Unlicensed Non-House Deductions

[Gellybean6903]

Hello there...

I just discovered this forum *today* and have been amazed by the wealth of information. Who knew you could deduct all of this from your in home?!

I just wanna say thankyou to all those who contribute...amazing.

We just started up our in home and are currently not licensed (we will be, but for the time being we are not).

I have learned through my reading of the many many posts here that we entitled to claim food expenses and all other non-house expenses for the entire year - food, toys, supplies, depreciation on furniture and appliances, mileage, etc.

I'm wondering what exactly qualifies for house vs non-house.

Specifically...security systems...flowers/landscaping outside of house (to enhance beauty of business)...and if we were to build a sidewalk/walkway to prevent further damage to our grass.

It just seems like a gray area...what is considered a non-house expense and what is.

Any and all help is appreciated!

Thankyou!!

[Michael]

Welcome to the Daycare.com Forum! I've upgraded your status. You can post freely now.

[TomCopeland]

Non-licensed

Hello there...

I just discovered this forum *today* and have been amazed by the wealth of information. Who knew you could deduct all of this from your in home?!

I just wanna say thankyou to all those who contribute...amazing.

We just started up our in home and are currently not licensed (we will be, but for the time being we are not).

I have learned through my reading of the many many posts here that we entitled to claim food expenses and all other non-house expenses for the entire year - food, toys, supplies, depreciation on furniture and appliances, mileage, etc.

I'm wondering what exactly qualifies for house vs non-house.

Specifically...security systems...flowers/landscaping outside of house (to enhance beauty of business)...and if we were to build a sidewalk/walkway to prevent further damage to our grass.

It just seems like a gray area...what is considered a non-house expense and what is.

Any and all help is appreciated!

Thankyou!!

House expenses are those that appear on IRS Form 8829 Expenses for Business Use of Your Home. They include: house insurance, property tax, mortgage interest, house repairs, utilities, and house depreciation.
If you are legally unlicensed you can claim these house expenses, if you are illegally unlicensed you cannot. Whether or not you are legal depends on your state licensing rules. So, if your state rule says you don't have to be licensed if you are only caring for relatives and children from one unrelated family, and you are caring for children from two unrelated families, you are operating illegally.