You may not be aware but the government has recently
enacted the Economic Stimulus Act to help the ailing economy. This hopes
to increase the investment of companies in their assets such as
equipments and get tax benefits from it. It indicates that business
owners who buy their products in 2008 will get a 50% depreciation bonus
on your 2008 taxes.
This act does not exclude home daycare business. It would be a good time
to start buying those equipments that youíve always wanted for you home
daycare business. Having the right equipment can greatly ease your work
and provide added value for your business. Kids can require a lot of
toys to keep them busy. They can have a short attention span so it would
be wise to provide them with a wide assortment of toys to choose from.
Toys are not the only equipment you can purchase that are included as
your business assets and equipment. There are other things that can be
considered and provide you with that helpful tax savings. Be sure that
when you make these purchases that you keep all your receipts for
accounting to make sure that they are included in your taxes at the end
of the year.
Some equipment that has been included for deduction for daycares are:
playground equipment for both indoors and outdoors. Computers for
internet access or childe use, childrenís computer for gaming and
leisure purposes, educational toys and peripheral equipment, nap time
necessities such as blankets, pillows, mats and rugs, etc.
The list also includes tables and chairs, laundry equipment for daycare
use, daycare safety equipments, plastic serving dishes, and dishwashers,
fencing for yards, storage sheds and yard care equipment. Basically
everything that you will be using for your daycare business can be
considered. You can talk to your accountant and learn more about the
coverage of this act.
Other appliances that you are using can be tax deductable as well. As
long as you are using them for your daycare it would be wise to keep a
record and document the use. Records of your daily activities and use of
the equipment can help in the deductions. If you use your computer for
blogging and advertisement or for forum for your daycare providers, you
may have the option of creating another source of income and an avenue
for deductions for you home daycare service.
Be aware of all the applications of this act and it will greatly help
you acquire all the equipment you need. Take advantage of the act and
get those tax deductions. Now would be a good time to purchase that
equipment. Be sure you do it as soon as possible sine the tax benefit is
only for the year of 2008. There may be difficulty in funding the
equipment that you need to buy but in the long run the benefits greatly
out weigh the cost of acquiring the materials you need. So donít take
too long in deciding. The sooner you act the better.