Feeling really bummed out about taxes!

[bright sparks]

cfred, I pray you don't get auditted because whoever is telling you to write of the cost of flowers for your garden is clearly out of their mind. You can right off an incredible amount of stuff but only a percentage on a lot of stuff unless it is exclusively used 100% for business. It's okay to put whatever you want down on your tax return but if you get auditted and the cra start digging around, I'd imagine a lot of us would end up with a bill based on writing off items which are just not acceptable regardless of what some accountants say. They aren't all created equally. You said you pay $300 at H&R block?? That is expensive and H&R Block really aren't specialized from my experience. They even missed things off my husbands individual tax return the first year we filed taxes in this country. Hence why I didn't go back. You'd have to have a pretty convincing arguement for the CRA for thinking that flowers were NECESSARY and even then they can do whatever they want. I write off lots, but I am sure to make sure that it will be something I can justify. I used to write off all books even my kids books but now they are getting older I can't honestly justify to the CRA that a Harry Potter book was for my daycare kids. The same with Toysrus purchases, I can't say a computer game is for daycare use. Just be very careful ladies that you don't overstep the mark by taking TO MUCH advantage of this ability to write lots off. Things have a way of biting you in the ass when you least expect it.

I recommend calling a few accountants and asking them what their experience is with working with home daycare providers as there is a lot that applies to us that isn't necessarily the same as other small businesses and people who have a home office. Keep spreadsheets outlining all your daycare related expenses and keep all reciepts FOR EVERYTHING. If in doubt ask your experienced accountant if it can be written off or call CRA for confirmation. $4000 seems like to much to pay in a year even if you were maxxed out with your childcare spots. I can send you a spreadsheet of different categories and items you can write off if that is helpful. Just send me a message and I will send it to you. Make yourself a cup of tea and push the worry to one side. Get all the facts together and then see how much you owe. Fingers crossed its less than the 4K and regardless, you can make a payment plan with CRA and you'll have an idea as to how much to save monthly for next years tax bill :-)

[cfred]

Bright Sparks - the children come with me to purchase our flowers, herbs and vegetables and help plant them too. It's a daycare activity. We also use things from the garden for crafts. In addition, when we have summer birthdays, I use flowers to decorate the cakes. These are totally above board daycare costs. I never write stuff off that's questionable. I use everything the accountant tells me I can write off and can back it up with my plans within the daycare.

With stuff for my kids, that's a thing of the past now as they're teens. But when they were young, their toys were used by kids as well because they had little friends in the group. When a bit older, I did write off a few games as one boy in my care was older and best friends with my boys. They played the games alot. I figure it counts.

The guy I use is an accountant. I can only use him as the others aren't qualified. I also like that they deal with CRA if anything crops up.

When I say you can write everything off, I assume it's inherent that it's a portion. Nothing is 100%, but if it's used in any way for the daycare, I claim it.