From: Manchester NH

Dear TaxMama,

I'm starting a day care center and was wondering what items I purchase can be deducted?

Thanks,

Beverly

 

Dear Beverly,

How wonderful. Now you'll always hear the patter of little feet around the house.

Just about anything you buy for the business will be deductible, either as a direct expense, or using depreciation.

Since you'll be buying food and household supplies specifically for the children, when you go to the market, separate the stacks of personal and school purchases. Pay for them with a separate check or credit card.

You'll find more information, some tips of paying taxes and a lead to an excellent book here: AskTaxmama Issue 252: Child Care Business.

Good luck with your new business.

Best wishes,

Eva Rosenberg, MBA, EA