So i was starting my christmas shopping this weekend and a came across a big playhouse for my daughter. My question is could i claim this as part of the daycare? The daycare kids are going to playing with it too snice it will be in the playroom?
So i was starting my christmas shopping this weekend and a came across a big playhouse for my daughter. My question is could i claim this as part of the daycare? The daycare kids are going to playing with it too snice it will be in the playroom?
Yes, I would think so.
This is one of those tricky areas of accounting - I do not have wee kids so no question any of my toys are ALL daycare use so I write off 100% ... I have attended accounting/tax seminars for our industry who say if you have wee kids at home that treating toys same as "shared use of home" using an equation of home much is home use and home much is shared with daycare ... have peers who write off 100% of big toys and so forth cause they likely would not buy stuff like that if they did not do daycare ....IMO in the absense of a clear NO rule like our home phones, family computers and so forth we can ultimatlely write off what we feel is a reasonable expense and that we can confidently argue as reasonable to our business in an audit and win ;)
Personally if it is in the daycare space and used daily by daycare I would right it off cause daycare is going to put wear and tear on it more than your kids will!!!
Dumb phone ...how much not home much :rolleyes:
Great point Reggio!Quote:
Originally Posted by Inspired by Reggio
Yes!
Toys we buy for my DD are used by daycare so = right off.
absolutely! They touch it...it`s for daycare!
I have been told things like that are considered shared and that 50-50 is reasonable considering it is available to both during the day and no one plays with it at night anyways. Also once your own child outgrows the item such as toys from a couple years ago that are now totally daycare you can also then claim the additional 50% making it belong to the daycare now instead of family.
A large item such as a playhouse - anything long term or expensive basically is supposed to be put down under capital cost allowance where you write off an amount per year. A playhouse might come under that catagory because of cost and how long it is expected to be in use.
This is the same that I was taught Playfelt ... actually went to one course where the person was say that this time of year if OTHERS are buying larger toys / equipment for your children that will be used in the daycare as well to see if they will 'gift the receipt' for it too since the daycare will be using it ... so grandparents or whatnot.
Also that anything you claim as an expenses 'now' if you sell it later when you close daycare or if the daycare just outgrows and you upgrade whatever you sell it for it must be than claimed as 'income' for the business ... I had to do this with my Lil Hauler wagon cause I bought it and than decided that it was not meeting my needs and taking up too much space as well as some other Lil Tykes outdoor stuff.
I'm with Regio and the other ladies - if it's not being used exclusively by your daughter (my kids keep their own toys in their bedrooms, not the PlayRoom) then it is a daycare expense.
Yes I think so. I took a daycare course and they said gifts for your own children could always be written off because they would eventually go to the daycare or else be used by the daycare immediately.
If your own children use the toys then only a portion can be written off because it is now a shared item - as in available to both sets of children during daycare hours but only available to your children evenings and weekends meaning they have greater access. I have normally claimed 50%.
In my case, toys go into the playroom = daycare. My daughter rarely goes down there during the week as we spend time together in the family room and we're not home weekends much so it's used MOSTLY for dayare. In MY case it would apply.
In the event of an audit you would have a hard time winning that arguement. If you have daycare age children it is just assumed that the items are available to them during non-daycare hours.
Agreed ... it is that same logic that they use to disallow us claiming our land line phones or basic cable and so forth ... if you worked out of the home the phone would still be there for our personal use when not working and it does not cost more to have it there for 'business' hours therefore we cannot claim the basic line as a business expense only any 'add ons' you might want to make business easier like call answer or display or forward.Quote:
Originally Posted by playfelt
One of the ways one accountant I heard speak used to 'prove' you have personal only toys for your children verses them all being 'shared use' toys is to KEEP ALL RECEIPTS including those for toys that are not used in daycare so that you can prove that 'see these are the receipts for the daycare only toys and these are this years receipts for my child's personal use toys that they play with outside of daycare hours' ... and than you can later years sell any personal use toys they outgrow to yourself and claim them as an expense at that time.
It is the same with FOOD ... in the event of ever being audited you should keep ALL your grocery and food receipts so that you can show 'see this $9000 in receipts was food to feed the daycare and this $12,000 in food receipts was used to feed my family which as you can see was not claimed as business expenses' ... if you do not have a way to prove that your family was not being fed with that $9000 worth of receipts they can try to use what THEY felt is a reasonable food allowance for your daycare which might not be accurate at all :(
I keep ALL our reciepts in this house to show 'these were our business expenses' and 'these were our personal expenses' so that it is clear I am not trying to pass off personal expenses as business.