Opening a new daycare

[Menita78]

I would like to open a daycare.....how early could I start setting up (purchasing items) to claim at income tax time, before I open? While I am still working?

[mickyc]

yes. I am pretty sure my accountant claimed my daycare space for the majority of my maternity leave because I was "getting ready". We did some renos to the space before I started so it was already the daycare space. I am pretty sure I claimed expenses 6 months prior to opening (hydro, cell phone, mortgage interest etc). I didn't start claiming water, tv, food until I opened. All items bought for daycare are claimable no matter when you buy them (playpens, highchairs, bedding, toys etc).

[Lee-Bee]

Please check with an accountant in your area that is familiar with daycare.

I took a daycare tax course (in Ottawa, ON) and I was told I could only claim items purchased one month prior to my start date. I don't recall if it was because I opened in Jan and I could only go back one month in the previous tax year...or if it was straight out one month before the opening date but I would strongly suggest getting a very firm answer before you purchase big ticket items!

This was my opening year so I haven't actually filed taxes yet to know how accurate this info was but it came from an accountant that does many, many home daycares every year for many years so I'd suspect it was fairly accurate.

[mickyc]

wow - one month prior!? that would be a lot of stuff to buy all at once. I started daycare that year in Sept on a part-time basis before becoming full-time the following January. I am pretty sure I claimed stuff starting in March that year. I would agree, definitely get a good accountant and see what they say. Your start date could be a huge factor in how far back you can claim. I never thought about it.

[5 Little Monkeys]

I got my hdc ready in a month. All the toys, highchairs, playpens etc that I bought, I claimed. I didn't start to claim other expenses until I opened though. I actually didn't even know that was an option. However, I was working part time as a nanny before opening my hdc so I didn't have that long to plan anyways. Once I decided I was opening that was it and I opened as quickly as possible!

I would also suggest finding an accountant in your area and asking for clarification.