IRS recognizes Small Business Week May 4 –
8, 2015, by highlighting some of its most popular educational products, videos
and webinars to help your small business thrive. A good example is the webinar:
“Tax
Related Guidance for Child Care Providers.” The online resource can help
you as a business owner or operator learn how to correctly report common tax
items associated with this type of business. Here are some of the topics
included in the webinar:
Child Care Income. The
presentation covers the various income items that you must report. These
include items such as:
- Income from contracts specifying charges,
terms and responsibilities.
- Diaper charges.
- Late pick up or early drop off fees.
- Registration fees.
Child Care Expenses. The
webinar discusses allowable business expenses, including:
- The business must be a for-profit activity.
- The expense must be ordinary and necessary.
- Only the business use portion of an expense
may be deductible if the expense has elements of both personal and
business use.
- You must make a reasonable allocation to
determine the business use.
- Amounts you spend for personal or family reasons are not
deductible.
Special Rules. The tax law contains
specific rules in areas where business expenses are difficult to separate from
personal expenses. For example, the webinar covers the special method you would
use to compute the business use percentage of a home available only for day care
service providers.
Other Expenses. Other expenses common to
child care businesses are discussed, including:
- Food consumed by your daycare recipients.
- Supplies such as games, books, child proofing devices and toys.
Other topics include the USDA Food Reimbursement
Program, depreciation rules and much more. Check out this and other IRS
webinars and videos to celebrate Small business Week 2015 at www.irsvideos.gov.
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