Daycare tax is one of daycare provider important task to do. Since the expense of daycare is huge then finding some item to deduct will be great. Basically, the daycare tax deduction will be separated as industry and broad deduction. You better check the following aspect to find the detail of several things to deduct form daycare tax:
The thing that common and necessary to provide daycare service in daily basis
Internal Revenue Service categorized the expense that you can claim for your business as ‘common’ and ‘necessary’. The common expense that can deduct from daycare tax means the one that will be typically find in industry while necessary is the items or even service that support your business. The example of items is daycare toys.
The home area that you use as your business office
If you are provider of home daycare then you can simply deduct the space that you use as home office from your daycare tax. Try to measure the square footage and area where you conduct the child care service. You may also put the bill like the internet, phone services and electricity as deduction from your daycare tax. Not only that, the part of your insurance, rent and mortgage may also include into your daycare tax deduction.
Equipment that used in your daycare business
When you purchase any equipment that used for daycare children or business use then it is also can be put into the daycare tax deduction. The example of item that can be deducted is telephone, computer and accounting software. Besides that, you may also deduct hygiene and safety needs like outlet cover, baby gates, travel crib, first aid kit, extra diapers, wipes, food, high chair and infant swing from daycare tax.
Items that used for children entertainment need
Daycare is also need to provide entertainment items for children. This thing also can be included into daycare tax deduction list. Toys, activity mats, jungle gyms, slides and games mats is just the example of item that possible to deduct.
When you want to deduct daycare tax then you better keep all the receipts of expense properly because it will be needed to make you easier to calculate and as a proof for audit process.