Monday, February 21, 2011

Daycare business – How to do the Personal Income Tax Return?

I have seen many home daycare providers do not know how to report their income and expenses. Gross income has to be reported in line 162 and net income in line 135 of T1 General Return (I have chosen Ontario Link). Make sure the software you buy has T2125 form. You can deduct business related expenses to arrive at net income.
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Here is a list of some expenses that can be deducted:

Kids meals
Business use of home office
Field trip expenses
Professional fees (accountant, lawyer etc)
Office expenses
Keep your receipts incase CRA comes for audit.

CRA site has wealth of information on this

1 comment:

Anonymous said...

I don't have a home business but found this article interesting