What Kind of Deductions Can I Claim for a Home Child Care Business?

Home childcare providers can claim deductions.

Running a home childcare business is a great way to interact with children and earn an income. There are many factors to consider when deciding on this venture, including financial information. People starting this type of business often wonder what deductions they will be able to claim. There are many. Here are some things to keep in mind.

Home as Office

According to the Small Business Association, keeping proper financial records is important. This includes receipts for bills that you pay for your home as well as information about the rooms in the home that are used for business. An accountant can help to figure out how much space and what percentage of bills can be used for business purposes.

Accounting Services

The Internal Revenue Service tells us that accounting services can be deducted, providing a valuable resource for the home childcare provider.

Furniture and Equipment

Ask the accountant about depreciation of furniture, as children can be hard on these types of items. Remember to ask about the depreciation of large appliances used for business and the computer.

Food

A portion of the cost of food that is provided during childcare hours is deductible. Create menus and attendance records, and keep receipts.

Toys and Other Items

Items purchased for use by the children in care are also deductible. This includes toys, games, books and play equipment. Save receipts for items such as toilet paper, soap and dish detergent to show to the accountant when you visit.

References

• Small Business Administration
• Internal Revenue Service