child day care services image

Locate Child Care

For Parents

Daycare Costs (Pricing)

For Providers

MetroDaycare

 

SafeSurf Rated


Who's Online
There currently are 17 parents online.

DAYCARE RECORDKEEPING

Determining Your Income Tax Deductions -- Direct Expenses

© 2003 Brigitte A. Thompson

Taxpayers are allowed to reduce taxable income by expenses incurred in the operation of a daycare business. In all cases, taxpayers must keep the receipt, invoice, canceled check and maintain the proper documentation to prove the expense was valid in the event of an IRS audit.

Qualified direct expenses are 100% deductible from your business income. The IRS requires that these expenses be "ordinary and necessary" in order to be deducted. They define "ordinary" as an expense which is common in your industry and "necessary" means that you need to spend this money in order to operate your business.

The following is a list of suggested items that may relate to your daycare business. There are many other expenses that may arise in the operation of your business; these are only suggestions.

Advertising
Accounting/bookkeeping fees
Bank service charges on a business account
Business licenses
Car/truck expenses
Conferences
Diapers & wipes
Dues
Education
Entertainment for the daycare children
Equipment
Food for the daycare children
Furniture for the daycare
Gifts for business associates (Limited to $25.00 per person, per year in 2003)
Insurance
Legal fees
Magazines & books necessary for your business
Maintenance & repairs
Office supplies
Payroll & related taxes
Postage
Printing charges
Rental of equipment
Telephone charges on business line
Toys

Brigitte A. Thompson is the President of Datamaster Accounting & Publishing Services, LLC and author of several recordkeeping books for daycare providers. To find out more about her books please visit " target="_blank">http://www.DaycareRecordkeeping.com.

All information is based on the current federal tax laws of the United States. Since these laws are subject to change, neither the author nor Metrodaycare.com assume liability for modifications that occur after the creation of this work. Every effort has been made to ensure this information is as accurate and complete as possible. These articles contain general information for businesses and are offered as an overview of the law.


 | Home | 1-888-227-3303 | 

MetroDaycare.com does not in any way endorse or recommend any of the child day care listings found within its site, and cannot be held responsible or liable in any way for your dealings with them. MetroDaycare.com provides this site as a directory to assist you in locating providers in your area, does not own or operate a child day care facility itself, and makes no representation of any of the listings contained within the top level domain MetroDaycare.com. We encourage that you look into any child care provider that you wish to place your children, and we provide this service only as a means of locating child care providers in your area.  Metrodaycare.com does not guarantee the accuracy of listings on its site. However we do strive to keep listings accurate.  Report errors here.
Page: /main.asp?content=articles/providers/recordkeeping5 :