View Full Version : Another question about claims and deductions at income tax time for the home daycare

Erinn W
10-13-2012, 01:40 PM
Hello friends,

Looking into costs and expenses again in regards to opening my daycare and I have a few more questions. As I see it for me in my area I am going to have to purchase a quad stroller. Is this an expense that can be a deduction at tax time...can it be claimed partially or fully..

I understand toys, books, crafts etc can be included in your claims but what about storage furniture such as book units and toy chests or pack and plays for sleeping etc..

Also! When do I look into getting a BIN number? I am on Mat leave and want to start advertizing in Late November for a late June open (When my mat leave is up) Can I get the BIN # and Business name prior to openning for advertizing purposes if I am on Mat leave? I know I can't advertize with a daycare "name" unless it is registered, so when can I register it if I am not operating yet? Sorry I think I think too much into things, but I want all my ducks in a row before I open my home to some new little ones and theor families.

Thanks for any input!

Erinn :)

Inspired by Reggio
10-13-2012, 02:55 PM
My guess is that you quad stroller as well as any other large expenses would be required to go under the Capital Allowance and written off over the course of several years .... this is how I did it all my start up expenses were added together by my accountant and written off in 20% increments over the course of my first five years of business. This was helpful because in the first few years your income is often not at maximum and you can only reduce your income so much from expenses before it is 'wasted expense' so it maximizes your tax credits over the course of many years.

I would double check with EI but my understanding is that as long as you do not earn income from your business while on maternity leave you can certainly advertizing its pending start date ~ I know I was on EI before I started up my business and I had my website up and ads out with the future start date so that as my leave ended I had some income coming in?

My understanding is you can register your business name at anytime ~ lots of people register business names and never use them they just buy them up so that no one else is able to use a name similar to theirs and so forth ~ that part should not matter regardless of your maternity leave.