How Do You T/S % Curriculum? Etc..

[actaktmdt]

Question: 2010 was my first year in buisness. I spent around 250$ in curriculum to use throught out the year. For the most part, in my care, was 4 dc kids and my own daughter. So I am wondering....... do I need to use my t/s % to apply towards the curriculum since my daughter was in attendance or can i can classify it 100% business?

Also, I started working in April. does this mean i do not need to use Jan, Feb and March in my t/s calc? so 8,760 hours would not be the denominator in my time calculation but 8,760 less jan, feb and march hours?

thanks

[TomCopeland]

Curriculum

If you only used the curriculum during day care hours then claim 100% of the curriculum as a business expense. If your own child used the curriculum after day care hours use your time-space %.

Since your started work in April, only count the hours you worked in your home from April - December. Then divide this total by the number of hours in the year from April - December. You are correct.

You can only claim house expenses from April-December.

[actaktmdt]

Thanks Tom. In your book, furnace cleaning/inspection/repairs are examples of deductable home repairs and maintenance expenses. If I had this service performed in Feb to fullfill the requirements of being licnesed/registered with my State (which didnt happen until April), does that mean I can not deduct this cost?

[actaktmdt]

I guess what I am trying to find out is if I start planning to open a daycare at the beginning of the year (January), take care of some of the application process of my state in February and March (i.e. proof of radon testing, furnace inspection, patching cracked paint in ceiling, purchase and install latches and locks for cupboards, etc) along with filing the paperwork, and receive my license in April, can I duduct the home repair and maintenance expenses from February and March? Does the start-up rule apply to home expenses?

[TomCopeland]

Time-Space %

The start up rule does apply to home expenses that are incurred because of the business. So all of the expenses you paid for in order to get your license are deductible this year.

[Abigail]

Nice to know! I hope I am good with record keeping. Receipts don't mix well with me for at the moment. I need to find a good system once I move.