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Taxes, Child Care Home, Utilities?
I am doing 2007 taxes. I own a business, a child daycare home. Under utilities section, what can I claim? Electricity I know, but what about telephone since it is required to have a phone and a home daycare, and also garbage pick-up, tv??
Thanks in advance!
4 Answers
- Mark SLv 51 decade agoFavorite Answer
The IRS assumes that the first telephone line into a home is for personal use. You can deduct the business long distance calls only. If you have a second phone line just for the business, it is 100% deductible.
Source(s): 17 years experience as tax professional and Enrolled Agent - SGLv 51 decade ago
If you only have one phone in your home, you cannot deduct any of the local charges (and associated taxes). The argument is that you would have had that phone even if you didn't have the business. This argument may not hold as much water as it used to, since many people have a cell phone instead of a land line at their house. Nonetheless, it is the current rule.
Discussed in IRS pub 587 under the section called "Telephone":
- Anonymous1 decade ago
The Utilities that you incur in the production of income can be deducted from your Schedule C to determine your net Self-Employment Income. Utilities are Electricity, Natural Gas, Water, Trash Pickup, Telephone. You did not say if you operate your business from home or not. If work from home then all the expenses and the Cable TV are only deductable to the percent used for the children.
