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Man! I put SO much money into my tax installments!!!!!
I STILL OWE MONEY!!!!!
Hubby and I were all set thinking that I'd be getting thousands back. We were SO WRONG. Last night bit the big one.
My shopping spreee is cancelled.
Anyone else letting the man get them down?:(
this year I owe money but not much. Are you sure you are claiming everything. I'm just finding the longer I do it, the less stuff I need, some stuff I have to replace but nothing too crazy. What percent are you claiming your house.
I claimed everything I can. I'm a bit of a nazi about it. But like you said I need less things now that I'm established. I made a lot of money last year. I think I went into a different taz bracket. It just sucks.
Do you do inventory? That's one thing I wasn't doing but apparently its really workth it.
cadillac what do u mean by 'do inventory' ?
I wondered about the inventory comment too. I do inventory for my felt business and have to total the amount of stuff I have on hand to sell, how much I purchased in the year to sell and how much I actually sold.
But for daycare what I have on hand is stuff that I have 100% already claimed in a previous year such as craft supplies whether it takes me two years or ten years to use them all the full cost was claimed in the year of purchase. Otherwise you would have to have claimed only the amount used per year which would not be to your advantage.
I was doing some research after my big tax flop, looking loop holes really.
I found an article on doing inventory for a home daycare.
It's the same as doing an inventory for insurance purposes. You inventory all of the items in your household that you use for the daycare in anyway. I'm talking everything from couches to dishes to toys.
The ticket is the DEPRECIATION value. If all your stuff is worth 20,000 in resale at the beginning of the year, then after repeated use and broken items the resale value may only be 15,000 at the end of the year. Ergo, your income is lowered accordingly.
I'm going to try it. its too late this year. THere's no way I could document and remember values at this point and decpreciate accordingly. I would suggest you guys try it too. document all the resale value of your stuff now and do it again at the end of the year.
You just have to remember to depreciate appropriately so that if you are still using a table in a few years, you haven't lowered the value so much that its now only worth $2.00. No one will believe that. And remember, that if an item is bought, you have to add that into the inventory.
you cant do inventory for your supplies for art and such. That doesn't work really as they are used and bought consistenly. I'm talknig about couches and tables and book cases, toys and books, blah blah blah
On things specific for the daycare yes you can depreciate those and there is a form to fill out in the tax package and you put in the percent personal and the percent daycare such as a couch kids use for an hour of tv after lunch is figured out accordingly and you depreciate the daycare portion - actually it is more a case of you can only claim a portion of the cost each year till you have claimed the portion.
Would love to see the article on inventory for home daycare because it doesn't really make sense since we claim our things as bought ie toys, supplies, furniture for daycare. Personal family items can be partially claimed in the year bought but not year after year again just continue with the part claim according to the form - capital cost allowance.
If you have items in the house that you use for daycare you can sell those to the daycare such as playpens, toys, sheets, pillows your family is no longer using then they become the property of the daycare and you claim a cost equivalent of buying a similar item at a garage sale/thrift shop.