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| Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc. |
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#1
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I have never used the MMK Program other than to file my food reimbursement claims... after finding this wonderful site of information and all of the great things that are said about MMK, I have decided to try using the full system for my daycare home.
I have been entering expenses for last year into MMK, and was wondering if I need to use the t/s % for my utilities... from looking back at last years taxes, it looks like tthe t/s % was used by my preparer for line 20 on form 8829~but then i was confused when reading a few lines down to multiply that # by my business percentage. If I use the t/s % for utilities, doesn't that mean that the business percentage was already calculated. Do I need to give my preparer the "actual" total amount of utilities or the t/s% that MMK will give me? Thank you to anyone who responds! |
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#2
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I am no expert, and new at using MMk too which I love BTW, however you have your choice as to how you want to write the untilities off, either T/S or business %. As Tom would probably say, if you want to use business %, you have to have good clear records showing that the business use of your untilities is more than the t/s.
See my thread about Netflix, and he explains this there. |
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#3
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When you enter expenses into MMK you should enter the full amount. Let's say you paid a utility bill of $100. Enter $100 under utilities and chose the t/s% option. Let's say your t/s% is 40%. The software will print out a Form 8829 report which will show $100 x 40% = $40. Your business deduction is $40. However, the tax preparer will enter the $100 on Form 8829, line 20. So, some tax preparers only want to see the $100 number rather than the $40 number because the Form 8829 asks for the $100 number. Give your tax preparer the Form 8829 report from MM.
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http://www.tomcopelandblog.com |
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| expenses, mmk, t/s%, taxes |
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