Holding deposits

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Originally Posted by kindertime

I was thinking about this today... if this money is a deposit, a "holding fee," then isn't the "holding" of the space earning it? I understand that you may use this money to pay for the child's last days of daycare, (i.e. their last 2 weeks) but if you call it a "holding fee," it is a fee for holding the space.

The other thing you should know, the people who work for the CRA are not obligated to give you the correct information. Call them today with this question and Beatrice will give you one answer and tomorrow George will give you a different answer. They are interpretting the rules like everyone else.

The CBC story Feb, 2015

http://www.cbc.ca/news/politics/reve...port-1.2946998

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To me a 'holding fee' is a fee that is paid to hold a spot for a few months. It would be income in lieu of holding a spot empty until they need it. It is different then a deposit that is meant to be used for last weeks of care. The deposit is security that the family will not bail on you without paying you money owed (even if it is just the money owed for the notice period). The holding fee would be current income the deposit would be income for a later (usually unspecified) date.