Two Houses

[daycare]

So I am having to move house.

In order to keep my daycare open and not lose any clients, I had to rent two houses at the same time.

I am still operating DC from my old house and had to set up the new house with DC as well so that I could pass the licensing inspection and now waiting for my license to get approved. As soon as I get my license, I will be able to move to the new home and move completely out of the old one.

I would not have had to do this if it were not for the DC. Can I claim both houses under rental expense?

In CA, you have to have a license to operate if you care for more than one families child.

Thanks for you advice on this

[AmyKidsCo]

Hopefully Tom Copeland will chime in, but I do believe you can claim both homes, regardless of their licensing status. The snafu may come in if you sell items from one home after moving to the other, like in a rummage sale, I think you have to claim the income.

[daycare]

Anyone???

[Blackcat31]

So I am having to move house.

In order to keep my daycare open and not lose any clients, I had to rent two houses at the same time.

I am still operating DC from my old house and had to set up the new house with DC as well so that I could pass the licensing inspection and now waiting for my license to get approved. As soon as I get my license, I will be able to move to the new home and move completely out of the old one.

I would not have had to do this if it were not for the DC. Can I claim both houses under rental expense?

In CA, you have to have a license to operate if you care for more than one families child.

Thanks for you advice on this

I'm just guessing here but I think you can ONLY claim the house you are ACTUALLY doing daycare in.

If you run the daycare June 1-15 out of old home, you can claim the rent from June 1-15 ONLY.

If you open daycare in the new house on June 16, then you can ONLY count
the rent from June 16-30 on that house.

I know you said you wouldn't have this issue if it werent for daycare but i don't think the IRS cares...kwim?

Like if you have to update your plumbing because of daycare, you still are only allowed to claim the percentage that the daycare uses and not all of it because your own family also uses it. Does that make sense?


I'm sure Tom will be along soon to clarify.

[TwinKristi]

I'd like to hear what Tom says about it because while I can see ^^, I would also think there's another place you can claim this extra on. But technically you're using both for daycare since you're operating in one and having an inspection in another. Many bsuisssses have multiple locations, how do they handle rent in more than 1 location?

[TomCopeland]

two houses

So I am having to move house.

In order to keep my daycare open and not lose any clients, I had to rent two houses at the same time.

I am still operating DC from my old house and had to set up the new house with DC as well so that I could pass the licensing inspection and now waiting for my license to get approved. As soon as I get my license, I will be able to move to the new home and move completely out of the old one.

I would not have had to do this if it were not for the DC. Can I claim both houses under rental expense?

In CA, you have to have a license to operate if you care for more than one families child.

Thanks for you advice on this

Since you are renting two homes at one time (for awhile), you can deduct the business portion of each rent paid. You are operating out of two locations at one time, so you can deduct the relevant expenses for each home for that period of time. File two Form 8829s at the end of the year and allocate your separate expenses to each home.

[daycare]

Since you are renting two homes at one time (for awhile), you can deduct the business portion of each rent paid. You are operating out of two locations at one time, so you can deduct the relevant expenses for each home for that period of time. File two Form 8829s at the end of the year and allocate your separate expenses to each home.

So in the home that I am setting up I can only use the time/space % correct? because children are not being cared for at this site?

So for example I have been working from 6p-12am around the clock during the week and 5am to midnight or so during the weekends.Are the hours that I can claim towards the % of time being used for business???

We have had to paint the entire house
replace front door
paint all of the trim of the house
set up daycare
build new daycare furniture
made new cubby boxes
built cover for fireplace
hung new fire extinguisher, alarms, smoke detectors, CDM, fire plan
had to install a gate outside so that children could not access an outdoor fire pit
re build the sandbox and refill
law sod in backyard for daycare
etc

[Blackcat31]

So in the home that I am setting up I can only use the time/space % correct? because children are not being cared for at this site?

So for example I have been working from 6p-12am around the clock during the week and 5am to midnight or so during the weekends.Are the hours that I can claim towards the % of time being used for business???

We have had to paint the entire house
replace front door
paint all of the trim of the house
set up daycare
build new daycare furniture
made new cubby boxes
built cover for fireplace
hung new fire extinguisher, alarms, smoke detectors, CDM, fire plan
had to install a gate outside so that children could not access an outdoor fire pit
re build the sandbox and refill
law sod in backyard for daycare
etc

Some of that sounds like things the landlord should be doing. Why do you have to paint the entire house? He should also be taking care of the new door.

I was also under the impression that the landlord must furnish smoke detectors.

Also, how come you aren't using your old daycare furniture and are having to build new stuff?

[daycare]

Some of that sounds like things the landlord should be doing. Why do you have to paint the entire house? He should also be taking care of the new door.

I was also under the impression that the landlord must furnish smoke detectors.

Also, how come you aren't using your old daycare furniture and are having to build new stuff?

Well I needed to move in ASAP and I took it on under those conditions. The landlord is not responsible for the additional fire alarms or smoke alarms that fire requires us to have.

I have to keep my old place operational and set up the new place at the same time. My other house is 1000sf bigger and most of that furniture won't fit in this house , it's too big.

I didn't buy all new shelves. I had to take them apart to move them without damage and then put them all back together.

[MarinaVanessa]

I think as far as the time spent doing business things at the new place (and I'm assuming here) I think you'd be able to claim that time even though you're not actually doing daycare out of it yet.

I'm thinking about it as if it was a start up. Providers that don't have clients yet but are fixing up their place in order to do so can claim that time so I'm thinking why not you? I also don't think it matters that you're not licensed for the new place because license exempt providers can still claim the same benefits that licensed providers claim.

Hopefully Tom can chime in on the time\space thing.

If and when we move at least I know who to reach out to for info about the whole process

[Blackcat31]

Well I needed to move in ASAP and I took it on under those conditions. The landlord is not responsible for the additional fire alarms or smoke alarms that fire requires us to have.

I have to keep my old place operational and set up the new place at the same time. My other house is 1000sf bigger and most of that furniture won't fit in this house , it's too big.

I didn't buy all new shelves. I had to take them apart to move them without damage and then put them all back together.

Aw, that ****s. Totally see how that can happen.

I was just thinking you shouldn't be responsible for certain things but I can see how the circumstances made it your problem.

Bummer.

Hopefully you will be able to write all of this off and not be worried come tax time.

I am still feeling horrible that you even had to move under these circumstances. :hug:

[TomCopeland]

two houses

So in the home that I am setting up I can only use the time/space % correct? because children are not being cared for at this site?

So for example I have been working from 6p-12am around the clock during the week and 5am to midnight or so during the weekends.Are the hours that I can claim towards the % of time being used for business???

We have had to paint the entire house
replace front door
paint all of the trim of the house
set up daycare
build new daycare furniture
made new cubby boxes
built cover for fireplace
hung new fire extinguisher, alarms, smoke detectors, CDM, fire plan
had to install a gate outside so that children could not access an outdoor fire pit
re build the sandbox and refill
law sod in backyard for daycare
etc

You can only count hours in the new home that are spent on business activities that wouldn't be done if you weren't using the home for your business. So, general general painting time, etc. don't count. Set up for the daycare room, building new daycare furniture, new cubby boxes, sandbox you can count.