I am starting a Daycare and am wondering what the best way to do taxes is.
2007-05-02 12:34:23 · 5 answers · asked by caden S 1 in Business & Finance ➔ Taxes ➔ United States
I'm not a tax expert, but I can give you some suggestions. You might want to contact a tax preparer for advice. However, I would keep a book of all income that you receive and who from. Because at the end of the year, you have to write them a tax statement of amount paid so they can write it off of their taxes as an expense (child care expense). And you need a copy for your records to do your taxes at the end of the year. I would keep all receipts for your business. Any supplies, food, gas, anything that is related to your business. Including paper for your records. Anything that is related. Here is a couple ideas, there could be more. Good luck in starting your daycare.
2007-05-02 12:42:02 · answer #1 · answered by flower 6 · 0⤊ 0⤋
A daycare is a good business in terms of writing off debt. You will need to save all of your receipts and make sure that you keep a record of expenses that are strictly business related, especially food that is used. If you are trying to claim the business for the 2006 tax year it may be too late to think about records. You can still use portions or rent/mortgage if you have a receipt record history of your daycare income. Document everything and use the 1040A. Just remember to keep your record for 7 years!! S. Laureys
2007-05-02 19:42:08 · answer #2 · answered by stevenmlaureys 2 · 0⤊ 2⤋
Get a spreadsheet and record all your expenses related to the daycare. At end of year you will need a Sch C, form 8829 and Sch SE to complete your tax return. Get 06 copies plus the instruction booklet and a Pub 17 by calling the forms order line or going online to IRS.GOV / forms order. Then look them over and see which sections apply to you. It is really quite simple when you get into it.
2007-05-03 10:48:09 · answer #3 · answered by acmeraven 7 · 0⤊ 1⤋
Do you mean employer / employee taxes, corporate taxes, unemployment, sales tax (if applied in your state?).
The best way to do this is to hire an accountant - if you're inexperienced, you need to have a professional ensure that you're on solid footing with all of the governmental agencies.
2007-05-02 19:38:19 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Keep track of all your expenses, and of all of your income. It would be a good idea to talk to a CPA now - he or she can give you advice on what records to keep and what expenses you might be able to deduct.
2007-05-02 19:39:29 · answer #5 · answered by Judy 7 · 1⤊ 0⤋