T/S % Again

[JoJo]

First Year in business, so this is a rookie question. If I buy $2000 worth of cleaning supplies, toys, etc... do I apply the T/S % to those items? What if some of the toys are just for daycare?

Sorry for the basic questions. I ordered The record Keeping Guide so my question will probably be answered in there, but I'm too impatient!

[marniewon]

Anything that is solely used for your daycare (toys, wipes, etc if you don't have any small children of your own) can be deducted as actual price paid for them (100%). Cleaning supplies, toilet paper, paper towels, etc you must use TSP for, since those things are used for dc and your own family.

If you do have small children who could/would use the toys, wipes, etc, then I would use the TSP since it would be too hard to figure out if your own children ever used anything that you are saying is just for daycare. Like, I bought a wagon for $50. I can count 100% of that cost because my youngest is 14 years old, and I have a very valid argument that he would never use that wagon for himself.

[JoJo]

Anything that is solely used for your daycare (toys, wipes, etc if you don't have any small children of your own) can be deducted as actual price paid for them (100%). Cleaning supplies, toilet paper, paper towels, etc you must use TSP for, since those things are used for dc and your own family.

If you do have small children who could/would use the toys, wipes, etc, then I would use the TSP since it would be too hard to figure out if your own children ever used anything that you are saying is just for daycare. Like, I bought a wagon for $50. I can count 100% of that cost because my youngest is 14 years old, and I have a very valid argument that he would never use that wagon for himself.

Thank you very much for your reply. I'm starting to get the hang of some of the daycare stuff, but I'm still clueless in A LOT!