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So my daycare is not going to be enrolling any kids till January. Am i able to file taxes for this year based on start up expenses? Or do i need to wait till im actually making money?
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"God said, ‘I have found David son of Jesse, a man after my own heart. He will do everything I want him to do.'"
Acts 13:22 -
I started the trainings, getting supplies,etc. to open my daycare in Nov 2008, I didn't open my daycare until Aug 2009, so I was able to claim everything on my 2009 taxes, everything done in 2008 was considered "Start up costs", so wait until your first year in business, then claim everything. If your daycare isn't open yet, you don't technically have a business yet. -
Starting Out
Your business begins in the year you are ready to care for the first child, and telling others that you are ready. So, if you aren't ready to care for children until 2012, your business begins in 2012. Expenses you have in 2011 can be claimed in 2012, but not in 2011.Comment
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So if I started buying items in 2010, but my daycare didn't open until a few weeks ago I can still use those receipts as my start up costs for this year?
Also, for the items I bought at rummage sales $1 here $5 there kind of thing, can I only give them a fair market value (books for example I always bought second-hand) and only depreciate them but not claim them? I'm kind of confused. I was told if I don't have a receipt it doesn't do me any good by another provider in town.Comment
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Start up costs
Yes, deduct your 2010 items in 2011. For items purchased in 2010 that cost less than $100 you can claim them in 2011 (you don't have to depreciate them). Use the actual cost you paid for them. You don't have to have a receipt to claim an expense. You need an "adequate record" which could include a photo, and a written record. Write a note out today of where you bought the items and what they cost. Then take a picture. Guess the cost if you have to. You will be fine.Comment
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