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I just did a quick google search because it bugged me not to be claiming something when I could get more tax savings. So far I have found this:
http://sbinfocanada.about.com/cs/tax...noreceipts.htm
I will have to look more on to it, but it sounds risky to claim something if you do not have receipts in case of an audit.
The nature of our business is different than for most businesses. Most do not buy from garage sales, second hand stores, the dollar store, friends, kijijji, etc. We do and as such we can still claim an item if we can prove we bought it. In an audit yes you may be denied something unless you can prove it such as producing the puzzle or truck in the kijiji ad. But at the same time to miss out on savings that are legitimate because of the fear of it being denied in an audit is not realistic either and a fear the tax people like to portray.
I print out the kijiji ad, and staple the emails of correspondence with the seller including time and date we agree to meet for sale.
I use strategic tax in bells corners, Dave something.
Yeah I'll claim my kijiji and second hand store things that I bought. I dont remember where I have heard this once, but as long as you can prove the purchase, it was okay. Anyhoo the problem is, I loaded my daycare from kijiji and second hand store before I open and never thought of printing the papers or asking a receipt at the second hand store :( If I had in the beginning it would of been a few hundred dollars more to my advantage. Oh well, now I do...
Since you bought those things before opening you can also claim they belonged to you. Now you wish to change their ownership from you to the daycare so you "sell" them to yourself at used prices and make out a receipt and claim accordingly. What you then have to remember for anything you do that with is that if you later sell the item the money counts towards your daycare and not you.
Oh really... I did not know that... tx
It was a lot more helpful when the CCPRN tax workshops were given by seasoned caregivers and not people from revenue canada. Of course they are going to just spout what is written and not let you know all of the extra perks you can claim. But if you do get to ask questions like that you will be told how to do the receipts etc for yourself.
It all comes down in an audit of logic and proof. You have proof in that you have a piece of paper you wrote and dated 3 years ago (assuming you are audited back which they tend to do) that says you bought a puzzle, 2 books and sorting toy at a garage sale for $10. It is a legitimate item in that it falls under supplies-toys and was done at the time of sale/purchase not like an afterthought.