New daycare- help

[AuntTami]

I began my daycare in August with only very part time children. In October, I signed on my first full time kiddo. Last week, I signed on two more full time kiddos. I'm currently license exempt because I only keep 3 children at a time. So, I have a few questions

Do I need to/should I establish an EIN? Can I do this even though there's no "legal" business, my daycare doesn't have a doing business name, or anything like that.

I live with my boyfriend, and we rent our house from his parents. Each month a receipt is written for $300 for my portion and $300 for his portion. So I can only claim my $300 even though we actually pay $600? The house is paid off according to the bank, his parents paid it off. We're reimbursing them instead of paying the bank.

What about utilities? They're all in his name. I moved in with him and he already had everything set up and established, so we just left it. Can I claim any of those? I can't even "prove" that I paid any of it as they were all paid from his checking out(we just opened a joint account, so how would I prove that I paid it in the future if I can't claim it this year?)

Our house is currently under an LLC right now. It's something his parents set up when he purchased the house as he was a naughty child, and they were worried if he got into trouble, the house could be taken, so they set it up under an LLC. So, what do I do about that? Is that going to hurt me?

I plan to take my taxes to an accountant this year since I'm new, but from what I'm reading, because we JUST started our account together and all bills were previously paid from his account(even though I put money in it), and because the house is actually in his parents name/an LLC, I can't claim ANYTHING regarding utilities or anything? Is that correct?

So now what am I supposed to do?... If I cant claim any of my housing expenses, I'm going to lose money hand over fist come tax seasons! And if that happens this year, what can I do next year to remedy everything!?

[TomCopeland]

Starting out

I began my daycare in August with only very part time children. In October, I signed on my first full time kiddo. Last week, I signed on two more full time kiddos. I'm currently license exempt because I only keep 3 children at a time. So, I have a few questions

Do I need to/should I establish an EIN? Can I do this even though there's no "legal" business, my daycare doesn't have a doing business name, or anything like that.

I live with my boyfriend, and we rent our house from his parents. Each month a receipt is written for $300 for my portion and $300 for his portion. So I can only claim my $300 even though we actually pay $600? The house is paid off according to the bank, his parents paid it off. We're reimbursing them instead of paying the bank.

What about utilities? They're all in his name. I moved in with him and he already had everything set up and established, so we just left it. Can I claim any of those? I can't even "prove" that I paid any of it as they were all paid from his checking out(we just opened a joint account, so how would I prove that I paid it in the future if I can't claim it this year?)

Our house is currently under an LLC right now. It's something his parents set up when he purchased the house as he was a naughty child, and they were worried if he got into trouble, the house could be taken, so they set it up under an LLC. So, what do I do about that? Is that going to hurt me?

I plan to take my taxes to an accountant this year since I'm new, but from what I'm reading, because we JUST started our account together and all bills were previously paid from his account(even though I put money in it), and because the house is actually in his parents name/an LLC, I can't claim ANYTHING regarding utilities or anything? Is that correct?

So now what am I supposed to do?... If I cant claim any of my housing expenses, I'm going to lose money hand over fist come tax seasons! And if that happens this year, what can I do next year to remedy everything!?

You can get an EIN without being licensed or having a business name. You are not required to get an EIN. I do recommend getting one because of identity theft.

You can deduct a portion of the $300 rent you paid, since you aren't married.

You can only claim utilities if you can prove you actually paid them. Going forward, you can keep records of when you make deposits into your joint account.

The fact that the house is owned by an LLC doesn't make any difference to you.

Since the home is owned by the parents, you and your boyfriend can never claim property tax, house insurance, mortgage interest or house depreciation. The only way to claim these expenses is if you own the home.

You can claim house repairs, utilities, renters insurance if you can show the amount that you paid for these items. The only way you can get to deduct more is if you get married.

[AuntTami]

You can only claim utilities if you can prove you actually paid them. Going forward, you can keep records of when you make deposits into your joint account.

You can claim house repairs, utilities, renters insurance if you can show the amount that you paid for these items. The only way you can get to deduct more is if you get married.

How do I show that I paid these things?

Also, how do I keep record of making deposits since it's a joint account? How do I keep track of who deposited what? Not all of my families pay by check. Most pay by cash that I eventually put into the account to pay bills.

[TomCopeland]

Record keeping

How do I show that I paid these things?

Also, how do I keep record of making deposits since it's a joint account? How do I keep track of who deposited what? Not all of my families pay by check. Most pay by cash that I eventually put into the account to pay bills.

If you pay by check, write a note in the memo line of the check. When you deposit cash into the joint checking account, keep a record showing who paid you. For example "$300 from Mrs. Jones for first two weeks of January, 2015, deposited on January 1, 2015."