Making Christmas Gifts for DCK

[HappyHeartsChildCare]

I want to sew mermaid tail or shark tail blankets for the DCKs this year. Can I consider the money spent on fabrics and supplies as "gift expense"? And if I use fabric that I already have bought previously (no receipts), can I still expense it?

The DCKs will open the gifts during the Christmas party and take them home.

[TomCopeland]

gifts

I want to sew mermaid tail or shark tail blankets for the DCKs this year. Can I consider the money spent on fabrics and supplies as "gift expense"? And if I use fabric that I already have bought previously (no receipts), can I still expense it?

The DCKs will open the gifts during the Christmas party and take them home.

Yes, you can deduct up to $25 per child per year as a gift.

[HappyHeartsChildCare]

Thanks!
Will I be able to deduct even if I use fabric that I have purchased previously? I don't have receipts anymore, but I can go online to price out the fabric that I use.

[TomCopeland]

gifts

Thanks!
Will I be able to deduct even if I use fabric that I have purchased previously? I don't have receipts anymore, but I can go online to price out the fabric that I use.

Yes, go online to estimate the price.

[Josiegirl]

$25 per year? It's been that forever it seems. Not per holiday or event but per year? That doesn't buy a whole lot for a kids' birthday, Christmas, if you get them a little something for Valentine's Day, etc., etc.

JMO but they should increase that.

[Blackcat31]

$25 per year? It's been that forever it seems. Not per holiday or event but per year? That doesn't buy a whole lot for a kids' birthday, Christmas, if you get them a little something for Valentine's Day, etc., etc.

JMO but they should increase that.

I think its generous that the IRS even allows that.

Usually the rule is "necessary and required" for anything we deduct as a business expense.

[midaycare]

I think its generous that the IRS even allows that.

Usually the rule is "necessary and required" for anything we deduct as a business expense.

I think we get shafted. Other businesses can deduct so much more. Contributions to charity being just one example.

[spud912]

I think we get shafted. Other businesses can deduct so much more. Contributions to charity being just one example.

Yes I agree.... I think generosity should be rewarded. We're already taxed on those purchases.

[Josiegirl]

There are a lot of things we get for daycare that IMO are not required or 100% necessary. We get them because it might make our days easier or we'll have more to offer the dcks. We do what we can with what we have most of the time but in this particular issue, you take a whole year and only 25 bucks, it's not a lot.

[Unregistered]

My tax preparer says that if I give away items during a party they are supplies, not gifts. I use the $25 for anything I give parents. I have not asked if it is $25 per person or $25 per family though.

[Blackcat31]

I think we get shafted. Other businesses can deduct so much more. Contributions to charity being just one example.

Aren't we allowed to deduct contributions to charity too?

[midaycare]

I think its generous that the IRS even allows that.

Usually the rule is "necessary and required" for anything we deduct as a business expense.

Necessary and required ... whose perspective, ? The government? QRIS? Me?

If I buy if for daycare, it gets deducted. I may not need another 20 books, but I'm still going to buy them. I may not need IKEA organizational storage cubes, but I have them and deducted them. I don't need a lot of things, but I have them.

[midaycare]

Aren't we allowed to deduct contributions to charity too?

Not as a business, but on our personal taxes, yes. I still claim charity contributions my husband and I deduct, but not from the daycare.

Which is a shame for me because I have the kids involved in two charities and "we" (meaning I) donate weekly.

[TomCopeland]

contributions

Aren't we allowed to deduct contributions to charity too?

You can only deduct contributions to a qualified charity as a personal itemized expense on Schedule A. It's not a business expense.