Not Fully Licensed and Deducations

[Unregistered]

Greetings,
I was wondering if I could claim daycare expenses and I have not been fully licensed. I am going through the process and should be opened within the next month. But, I have been paying rent on the location as well as utilities and buying items for the center as well as professional development. I have been doing all of this out-of-pocket. Please Help!!!!

[Blackcat31]

Greetings,
I was wondering if I could claim daycare expenses and I have not been fully licensed. I am going through the process and should be opened within the next month. But, I have been paying rent on the location as well as utilities and buying items for the center as well as professional development. I have been doing all of this out-of-pocket. Please Help!!!!

If I recall correctly you can only claim expenses once you are actually in business. If you have not cared for any kids yet, you can't claim operating expenses because you have not been operating.

[Blackcat31]

Here is a reply I found that Tom posted in response to another poster asking the same thing:

You can start claiming deductions for your business in the year your business begins. So, items you purchase before your business begins can be deducted. See my article on this: http://www.tomcopelandblog.com/2014/...ess-began.html

Don't start counting your hours until you start caring for children. Your time-space % will be based on the number of hours you use your home for your business after your business begins. Your business begins when you are ready to care for children and are telling others you are ready.

[TomCopeland]

not yet licensed

Greetings,
I was wondering if I could claim daycare expenses and I have not been fully licensed. I am going through the process and should be opened within the next month. But, I have been paying rent on the location as well as utilities and buying items for the center as well as professional development. I have been doing all of this out-of-pocket. Please Help!!!!

Since you are renting space for a child care center, you can deduct all of these expenses even though you are not yet open. This rule is different for family child care providers who are living in the home they do business in.