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Gees, I don't know. Why. Why is ALWAYS, when some certain people on here make a simple statement or a comment, it is turned into something it isn't. Something I will never figure out. Never.
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Seriously! I couldn't agree more, Crystal. I rarely (if ever) post something that is not directly related to the original poster's question or at least will follow the topic. Her question was, "can i deduct it?" If you don't know or are trying to convince her of doing something with the cards that she doesn't want to do...just keep it to yourself!! She didn't ask if it's polite to use gift cards for daycare!
My apologies to the original poster on this post, but I am so frustrated with these threads the past couple of days...
Back to the topic...Comment
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I think it happens because of the info the OP posts about the question, which sometimes is inflammatory in nature, and then it rubs people the wrong way. Sometimes too much info is given. If this question was asked simply if the giftcards were deductable, the tone of the responses would be more favorable, but when you add in the fact that these were gifts to her at her baby shower, and now wants to use them for DC, people get offended, and start stating their opinions. If too much info about a question is given, then too much opinion is going to be given back. IMOComment
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And what one person thinks doesn't relate to a topic or thread, maybe another person thinks it does. Thankfully, we don't all think alike.Comment
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Okay yes please back to the topic ... I totally get your "fuzzy math" logic here. I went back and read through my Tom Copeland book again also and I wasn't all too clear on it still. I left a message for my tax consultant to see what they say but she'll probably take a while to get back to me.Okay, I have the seventh edition of Tom Copeland's book and I looked up every reference to gifts. In the section "Examples of Deductible Children's Supplies" he lists "presents bought for your own children that are used by the children in your care." So if you get creative with your logic, you could say that the gift cards were "presents bought for your own (unborn) child" and so therefore if you got something for your daycare with them it could be deductible. I'm hoping Mr. Copeland will chime in with the real answer, since I'm suspecting that my reasoning might amount to "fuzzy math"
I figure that if a gift was given to my unborn baby, in this case gift cards, but if I buy some supplies for the household and some of these items get used by my DC kids how would that make sense to not get reimbursement (deductible) for at least a portion of the amount? I mean it's not like I'm going to want to keep track of which toilet paper was bought with our own money and which rolls were bought with the gift cards so that I can make sure that the DC kids use the right roll, KWIM?
And then I get to thinking that what difference is it then whether I buy toilet paper for the house or craft supplies? In either case the DC kids would eventually use at least a part of it. I dunno
, now my heads all jumbled up.
P.S. Although I enjoy everyones opinions and believe in everyones right to have it, let's stick to the topic so that hopefully my question gets answered. Once I figure it out then everyone can have at it. Again, question was "Can I use a gift card that was given to buy DC things and still claim it as a deductible?"
Thanks everyones input though. It's all very interesting to me ::.
Last edited by Michael; 09-30-2010, 04:07 PM.Comment
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I believe that what that means is that if you BUY something with your money for YOUR kids, including, say a birthday gift, and IF your DC kids play with it also, THEN you can use T/S.
However, how can you write off something YOU did not pay for?? That sounds illegal me.. If someone gives me a exersaucer for a gift, I can't that write that off. I did not purchase it. I believe it would be the same with a gift card. It's been bought with someones else's money, so how you you write it off?Comment
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I see your logic - see I thought it might be "fuzzy math."
Although in the Record Keeping Guide There is a section on gifts, and it does say that if you "receive cash and then spend it on items for your business, or if you receive a large item, such as a swing set, you can deduct the cost of these items as a business expense." I would imagine you'd have to declare any gifts received as income as well.
I would strongly suggest that if someone is not sure about something like this that they consult an accountant who is familiar with the special needs of daycare providers. That's why I write a great big check every single year to mine
, so that I can make sure that I stay on the right side of the IRS.
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Gift cards
Here's the deal:
If you get a gift card from a friend (that is, someone who is giving you a gift as a friend, not because of a business relationship) then the gift card is not income. It sounds like this baby shower was a gathering of "friends", not a gathering of day care parents.
If you get a gift card from a day care parent, this should be reported as income. Any cash or gift cards from day care parents, even if they call it a "gift" is reportable income. This is because you are receiving this as a result of your business relationship. However, if you receive a thing (book, scarf, flowers, etc.) from a day care parent then this would be called a gift and is not income.
No matter who you get the gift card from, if you spend the gift card on something that is used in your business you can deduct it under the normal rules of business deductions.Comment
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Awsome thanks Tom. I did call my tax consultant and have yet to receive a call back
. Apparently I'm only important at the beginning of the year when I give her money to prepare my taxes !
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