3.5k
Daycare and childcare providers in Winnipeg, Toronto, Vancouver, Ontario etc. in CanadaGarderies à Montréal ou au QuébecFind daycare or childcare providers in the USA
Forum control
+ Reply to Thread
Results 1 to 6 of 6

Thread: Wite Offs

  1. #1

    Wite Offs

    Hi Everyone. I am new here. I have looked around and although there are some answers out there to my following questions, I am having a hard time finding any recent answers.

    Am I able to write off a TV I purchased for my home daycare? There was one here, but it was so old and burnt out. I purchased a new tv and a dvd player as well and some educational movies for rainy days.

    I also purchased a double stroller that I use only for my daycare kids. I broke mine last year trying to get through the snow. I also bought a wagon that is good in the snow, however my kids use the wagon sometimes.

    One afternoon when summer was approaching I was loosing two of my daycare kids for the next few months. I let them choose lunch on their last day and they picked pizza. I ordered in and kept the receipt. Can I write that off?

    I have kept all my grocery receipts. I highlight the items that they daycare uses. My family also uses some of these items. Lets say I spend $100 in grocery and every one is eating it. Do I divide the $100 by the total of 9 people (including my family).

    I am so lost with the right offs. I am going to be using an accountant for help, but I though if I can get the receipts totals ready it can save on some time and money. Any help or experience with this is greatly appreciated.

  2. #2
    Expansive...
    Join Date
    Jul 2012
    Location
    Ontario
    Posts
    529
    Thanked
    213 Times in 145 Posts
    You need to visit the CRA website and order the "use of home for daycare" pamphlet!

    You can certainly write off things like pizza day.

    There is a formula for claiming capital expenditures (big ticket items) which will help you determine how much you can claim.

    Save all your receipts and let your accountant show you what you can claim.
    Last edited by Wonderwiper; 01-09-2015 at 03:15 PM.

  3. The Following User Says Thank You to Wonderwiper For This Useful Post:


  4. #3
    Euphoric !
    Join Date
    Sep 2013
    Posts
    1,670
    Thanked
    629 Times in 475 Posts
    yes get a good accountant!! This is one thing I stress!

    There is a formula like wonderwiper said for capital costs. You get to claim so much per year for a few years (not 100% sure because that is what my accountant is for lol).

    Yes pizza day is 100% deductible.

    As for groceries I would just keep all receipts throughout the year and then claim a percentage. For myself my daycare is 50% of my home so I claim 50% of expenses. That includes hydro, water, internet, cable. We can claim interest you pay on your mortgage, property taxes, house insurance, house repairs, vehicle insurance, mileage on vehicle, repairs to vehicle. I give my accountant all my totals and he does his magic. Make sure and claim 100% for craft supplies, office supplies, toys and any other supplies used specifically for daycare.

    I am sure I am missing something as well but that is a good start. Get a good accountant is my best advice.

  5. The Following User Says Thank You to mickyc For This Useful Post:


  6. #4
    Outgoing
    Join Date
    Aug 2014
    Posts
    453
    Thanked
    180 Times in 135 Posts
    I do my own taxes but I completely avoid capital costs because it's so damn complicated. If you are going to be getting into these big cost items then you really need an accountant on your side,

    Very basically a large expensive purchase like a TV, outdoor play set, computer for your taxes, pricey multi stroller, are all business assets. None of them belong to you as an individual once you claim them.

    Over time, the value of these assets depreciates or increases - (i.e.. a business asset that was a purpose built day care center would be a property likely to increase tme. A business asset that is a car would likely decrease over time).

    So with capital costs and business assets, you don't get to just write off the whole cost in one swoop like you would new craft supplies. It's a complex situation where a little is claimed each year for the duration of the items lifetime and then some is carried forward to future years. Then if you close the business you have the issue of dealing with business assets and applying then to the closing accounts because you don't just get to keep the stuff since it's not yours.

    Way too complicated for me.

    Since you've already made these purchases, I agree that you need an accountant at least for the first year or two who can explain it all and then you can determine if you think you need that service forever.

    For me, if my day care needed a big ticket item, I tend to just buy it myself, and not bother claiming it. When I needed a laptop for accounts, e-mails, advertising, I just bought one and view it as a personal purchase which I happen to use for business too. I would claim any business specific software like UFILE each year but not the laptop itself.

  7. #5
    Euphoric !
    Join Date
    Feb 2011
    Location
    Ottawa, Ontario
    Posts
    4,499
    Thanked
    1,469 Times in 1,125 Posts
    Things like the tv I would probably claim 50% daycare assuming your own children watch it sometimes afterhours or weekends. The stroller and wagon are deductible as daycare items even though your own children use the wagon occasionally I wouldn't worry about that unless that is your only mode of transportation with them - ie if you dont' have another stroller and use the wagon to get to the park on weekends then it is a shared item. The large stroller is strictly daycare.

    Large items go into CCA and it isn't that complicated. In the business tax package there is a form to fill out where you will record the amount you spent on supplies and a section for CCA - it sounds funny but just do what it says in each box even if it seems odd because over the years it will make more sense. By the end of the row you will have the total amount you can claim for the year and the amount you will carry forward to claim next year.

    Pizza day since it was a daycare event is 100% deductible. Other groceries you can either total and divide by the number of family meals/daycare meals to get a percent of the total or you can make up an average daycare menu and cost it out as long as you keep the grocery receipts to support your pricing.

    Do get the booklet from the revenue Canada website on using your home for daycare. Make sure the accountant that you get has experience with home daycare because it is different than the average home based business.

  8. The Following User Says Thank You to playfelt For This Useful Post:


  9. #6
    Thank you everyone for the info and advise. I will definitely get a hold of that pamphlet booklet that was mentioned. I think I will work my accountant for the fist couple of years until I get the hang of things and easiest way to keep track of taxable items.

Similar Threads

  1. Multiple drop offs in one day
    By Busy ECE mommy in forum Daycare providers' experiences with parents
    Replies: 4
    Last Post: 07-13-2017, 12:12 AM
  2. Dayhome toy write offs
    By Allimd55 in forum Opening a daycare
    Replies: 7
    Last Post: 10-22-2015, 08:31 PM
  3. Pick Ups/Drop Offs
    By ottawamommy in forum This and that
    Replies: 8
    Last Post: 09-27-2015, 02:24 PM
  4. Write offs
    By Big Hearts in forum Managing a daycare
    Replies: 4
    Last Post: 09-13-2012, 06:04 PM
  5. Equipment write-offs
    By mlc1982 in forum Managing a daycare
    Replies: 9
    Last Post: 07-30-2011, 08:00 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

A few tips...

If you encounter a daycare provider with out-of-date openings / spaces, click on the button right above the currently listed openings to report it!
Did you know?
On average, a listing is viewed each month by more than 210 parents looking for an available opening for their child!
Partner in your
search for a daycare provider