What did you think ?
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What did you think ?
No but have always wondered some of the things they have to say about taxes. I know a few years ago home daycare was being targeted for audits and several from CCPRN were audidted - an some had pretty bad outcomes. Some of what they suggest now comes from those audits. One lady did take her case through tax court and won on a number of issues.
Yeah it was quite the eye opener forsure on what you can legitametly claim .... NO home phone was a shock unless it's strictly a business line .... no internet unless you can prove more than 50% of it is in use for daycare .... grocceries they want you to do 2 different bills for your food or have menus available to coincide with what you have shopped for . When taking kids out with your vehicle they want a log book with your odometer reading from the 1st of the yr to the end of the year with all trips/km's logged.
Also the business number that some people suggested you get that means nothing to cra they want your sin number on the reciepts .
A lot of those "suggestions" did come from the audits but they were in my opinion just to make the auditor's job easier - certainly not mine. Home phone I knew about as it says that right in the cra daycare leaflet. You can claim your cell phone though. I put cable, internet, cell phone into my business use of home calculation with the idea they are available to the daycare during daycare hours and family during family time.
Driving log book I knew about but then I don't take kids out in a vehicle. My daughter has to do it for her job too since she drives from client to client.
I really don't like it when any organization says you have to do something a certain way cause all the book says is be reasonable. And in our business with the ages it would mean creating three menus - infant/toddler/preschooler at least and then complicated if you feed your own kids too at the same time with daycare.
I have done meals several ways and it basically came close to being the same either way so I take the easy way out - even easier now cause it comes out to 50% fo cost since own kids are out of the house. I do the 2 snacks = meal and 2 kid meals = 1 adult meal then figure out for the average week. I stopped basing it on attendance since a sick kid just means more waste since food is already thawed out or based on size of tin as in you can't buy half a box of KD even if you are only serving 3 kids not 4.
Yeah they said no cable or internet unless you can prove with out a doubt that you use it more than 50% of the time for daycare .... Cell phones they said yes but again it must only be used strictly for the business (with copies of your cell bill to prove it )