Family Child Care Record-Keeping Guide Book

	Introduction: The Business of Child Care
Part I	Keeping Records
Chapter 1	The Basics of Record Keeping	3
	Record-Keeping Systems	3
	Tracking Income	5
	Tracking Expenses	16
	How Long Should You Save Your Records?	23
Chapter 2	Claiming Your Food Expenses and Reimbursements	25
	Common Objections to the Food Program	25
	Understanding the Two-Tiered System	28
	Reporting Your Food Program Reimbursements	32
	Reporting Your Food Expenses	33
	Calculating Your Food Expenses	36
	Frequently Asked Questions	50
Chapter 3	Figuring Your Time-Space Percentage	53
Step 1	Calculate Your Time Percent	54
Step 2	Calculate Your Space Percent	68
Step 3	Calculate Your Time-Space Percentage	73
	Frequently Asked Questions	77
Part II	Deducting Expenses
Chapter 4	Understanding Your Business Expenses	81
Step 1	Is the Expense Deductible?	81
Step 2	How Much of the Expense Is Deductible?	83
Step 3	When Is the Expense Deductible?	85
	Claiming Deductions If You Aren't Regulated	87
	Using the Start-Up Rule	89
	Saving Your Money	90
	Nondeductible Expenses	91
Chapter 5	Deducting Your Business Expenses	93
	Advertising	94
	Bad Debts	95
	Car and Truck Expenses	96
	Employee Benefit Programs	103
	Insurance	103
	Interest	104
	Legal and Professional Services	105
	Office Expenses	105
	Rent of Business Property	108
	Repairs and Maintenance of Personal Property	109
	Supplies	110
	Taxes and Licenses	112
	Travel, Meals, and Entertainment	112
	Utilities	113
	Wages	113
	Other Expenses	114
Chapter 6	Deducting Your Home Expenses	119
	Casualty Losses	120
	Mortgage Interest and Real Estate Taxes	121
	Homeowner's Insurance	121
	Home Repairs and Maintenance	121
	Utilities	122
	Rent	122
	Moving Expenses	123
Chapter 7	Claiming Your Depreciation Expenses	125
	Understanding Depreciation	126
	Depreciating Your Car	128
	Depreciating Your Personal Property	128
	Depreciating Land Improvements	135
	Depreciating Home Improvements	136
	Depreciating Your Home	140
	Keeping a Depreciation Log	142
Part III	Other Tax Issues
Chapter 8	Special Tax Topics	145
	The Child Care Tax Credit	145
	Dependent Care Plans	147
	Hiring Employees and Independent Contractors	150
	Selling Your Home	159
	Paying Estimated Taxes	162
	Understanding Self-Employment Taxes and Business Profits	164
	Setting Up Medical and Retirement Plans	165
Chapter 9	Working with a Tax Preparer	167
	When to Get Help from a Tax Preparer	167
	Hiring a Tax Preparer	168
	Working with a Tax Preparer	169
	Dealing with Tax Preparer Errors	170
	Finding a Tax Preparer	170
Chapter 10	Dealing with the IRS	171
	Handling an IRS Audit	172
	Handling Disputes with the IRS	174
	Getting Help with an IRS Audit	176
	Amending Your Tax Return	176
	A Final Note	177
	Appendix	179
	List of IRS Forms and Publications	179
	Getting Tax Help on the Internet	181
	Index of Deductible Expenses	183
	Topic Index	191