Write Off Question

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  • Ariana
    Advanced Daycare.com Member
    • Jun 2011
    • 8969

    Write Off Question

    I am in Canada and we are getting lots of snow in my area this year. I have just signed up some new clients and one client arrives 7:30am so my husband is having to get up and clear our double driveway. We had 25cm of snow yesterday and are getting more tonight. We feel like all we do is shovel and snow blow this year!

    Luckily we have my parents snowblower this year because they are out of town but its not a very good one. Can I write off the cost of a snowblower as a business expense? The only reason we would need one is for my business! I don't want a snow clearing service because they clear the snow at different times and I am not sure how reliable they are...also don't like the recurring cost.
  • Leigh
    Daycare.com Member
    • Apr 2013
    • 3814

    #2
    Originally posted by Ariana
    I am in Canada and we are getting lots of snow in my area this year. I have just signed up some new clients and one client arrives 7:30am so my husband is having to get up and clear our double driveway. We had 25cm of snow yesterday and are getting more tonight. We feel like all we do is shovel and snow blow this year!

    Luckily we have my parents snowblower this year because they are out of town but its not a very good one. Can I write off the cost of a snowblower as a business expense? The only reason we would need one is for my business! I don't want a snow clearing service because they clear the snow at different times and I am not sure how reliable they are...also don't like the recurring cost.
    I could write that off in the US, and I really can't see a reason why Canada wouldn't allow it, too-a cleared driveway is an expectation for your childcare.

    Comment

    • Ariana
      Advanced Daycare.com Member
      • Jun 2011
      • 8969

      #3
      Originally posted by Leigh
      I could write that off in the US, and I really can't see a reason why Canada wouldn't allow it, too-a cleared driveway is an expectation for your childcare.
      This is what I think too just wasn't sure if it was considered a household item or a business item!

      Thanks

      Comment

      • childcaremom
        Advanced Daycare.com Member
        • May 2013
        • 2955

        #4
        I think you can partially write it off. Because you'll use it for personal reasons, as well.

        Comment

        • Mike
          starting daycare someday
          • Jan 2014
          • 2507

          #5
          Originally posted by childcaremom
          I think you can partially write it off. Because you'll use it for personal reasons, as well.
          That's the way I think it would work, unless you had a dedicated driveway for daycare parents.
          Children are little angels, even when they are little devils.
          They are also our future.

          Comment

          • Puddleduck
            New Daycare.com Member
            • Jun 2011
            • 62

            #6
            I think you absolutely can- If I buy something for daycare and my kids use it after hours it's still a daycare expense. You use your driveway for business. You need to keep it clear for daycare so it's a daycare expense. Even if you use it for non daycare purposes at well.
            I don't think I've ever partially claimed anything. If I buy it for business than I claim it even if it has dual purpose. If you buy a swing set for daycare and your own kids use it on the weekend, you wouldn't partially claim it right? I don't even know how you'd do the math to partially claim. They want the amount on the receipt, not a random number.

            And after all that I admit I might be wrong .

            Comment

            • Snowmom
              Daycare.com Member
              • Jan 2015
              • 1689

              #7
              Yes, you can deduct the cost of a snowblower. Time/Space percentage I believe.

              Comment

              • childcaremom
                Advanced Daycare.com Member
                • May 2013
                • 2955

                #8
                Originally posted by Puddleduck
                I think you absolutely can- If I buy something for daycare and my kids use it after hours it's still a daycare expense. You use your driveway for business. You need to keep it clear for daycare so it's a daycare expense. Even if you use it for non daycare purposes at well.
                I don't think I've ever partially claimed anything. If I buy it for business than I claim it even if it has dual purpose. If you buy a swing set for daycare and your own kids use it on the weekend, you wouldn't partially claim it right? I don't even know how you'd do the math to partially claim. They want the amount on the receipt, not a random number.

                And after all that I admit I might be wrong .
                I think it's the time/space %age. Same as the areas that you use for your house, unless they are dedicated daycare, you can only claim the amount of time that they are used for daycare.....

                So unless it's a daycare-only driveway, and you wouldn't be using the snowblower for any other purpose, you could only claim part.

                Of course, I could be wrong, too.

                Comment

                • Baby Beluga
                  Daycare.com Member
                  • Aug 2014
                  • 3891

                  #9
                  Originally posted by childcaremom
                  I think it's the time/space %age. Same as the areas that you use for your house, unless they are dedicated daycare, you can only claim the amount of time that they are used for daycare.....

                  So unless it's a daycare-only driveway, and you wouldn't be using the snowblower for any other purpose, you could only claim part.

                  Of course, I could be wrong, too.
                  I also believe this would be a time/space/percentage calculation.

                  Your Time-Space Percentage is used to determine how much of the cost of items used for both business and personal purposes can be deducted as a business expense. You won’t know what your percentage will be until the end of the year because it’s based on the hours you work over the entire year. Howev


                  As a family child care provider, the answer to this question will make a significant difference in reducing your taxes. The biggest expenses you have as a business are the ones associated with your home: property tax, mortgage interest, utilities, house insurance, house repairs and home depreciation

                  Comment

                  • Puddleduck
                    New Daycare.com Member
                    • Jun 2011
                    • 62

                    #10
                    I think Tom's system is United States specific (I may be wrong).
                    Ariana, here's what we can deduct according to the CRA.
                    The Canada Revenue Agency (CRA) administers tax laws for the government, providing contacts, services, and information related to payments, taxes, and benefits for individuals and businesses.

                    Comment

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