Tweet
Hello, I am new here and have some questions! I am interested in starting a family daycare, but only if I can use a separate space. I was considering building an open, non-home like building, but it would be considered a commercial building requiring it to pass the same inspections as a center. That would be costly, so now I'm looking into building an actual home that is only used for daycare. I was told that as long as it's built as a home, it would be considered residential even if I don't live there. I have many questions,but first I am interested in how tax deductions would work in this scenario. Since everything there would be used only for the business, could I deduct 100% of space, utilities, etc? I am located in Minnesota. Any info helps! Thanks!
-
-
Welcome to the forum!
I am also in Minnesota.
I also provide care in a house in which I do not live.
I have operated this way since I opened (mid-90ies)
I am licensed as family care.
There are several women that operate this way in my community. One operates FAMILY child care in a commercial building and is licensed as family care (rule #2)
If you have any questions and I can be of help, don't be shy! -
Thank you in advance for your help! I am mostly interested in how tax deductions work. Are you able to deduct 100% of your daycare homes expenses?Comment
-
Ok.. I'm trying to figure out if I'd be able to make enough income after paying the mortgage, utilities, etc.. after I get started I would like to have my mom work with me, which would be another expense.. I just think it'd be nice to have a separate space and be able to leave your job!Comment
-
I make a pretty nice income.
You are planning well!
I am licensed for 12-14 and usually have 12
I don’t take kids once they start school.
My DH is also self-employed and assists as a second (licensed) caregiver when necessary so I don’t currently have an employee that I have to pay but have in the past.
If you your area has the need for care options and you can buy/built efficiently you can absolutely turn a good profit.
Know your area’s needs and create a good business plan.
Comment
-
You can apply for start up grants to help you get all the required equipment and such too...
Comment
-
Just throwing out ideas.... I operate out of the home I live in, but have a completely separate level for daycare. Other than the laundry being located downstairs I don't often go in the daycare area at all when not working. The daycare has its own playroom, kitchen, bathroom, and bedrooms. So I still get a lot of that feeling of leaving work, only my commute is a flight of stairs.
I know that wasn't your question, but possiby another option to consider if you're looking to buy/build anyway.Comment
-
how does it work if I have my own kids.. say I buy toys that are only for daycare use, but my kids will be at daycare with me obviously.. so if they only play with them during daycare hours can I count these toys as 100% business? or because my own kids touch a toy does it make it not 100% business, even though my kids are counted in the ratio and everything?Comment
-
Any toys you purchase specifically for child care are 100% deductible. If your child plays with the toys outside of care then you would use T/S% but if your child is only allowed to play with them during daycare they are daycare toys and 100% deductible. Your child(ren) are daycare children during daycare hours.
Comment
-
Thank you!! You are so helpful. I really appreciate it!Any toys you purchase specifically for child care are 100% deductible. If your child plays with the toys outside of care then you would use T/S% but if your child is only allowed to play with them during daycare they are daycare toys and 100% deductible. Your child(ren) are daycare children during daycare hours.Comment
so I don’t know the complexities of it all but yes every expense is counted.
Comment