Hi, I am a owner of a home in which my fiancée does daycare out of. I guess I have a few questions as to what we should do to help her with the end of the year tax situation.

Will she have to be on the Deed (and/or) Mortgage in order for her to deduct items such as the driveway we put in? The outdoor playset that we bought? And many other items.

How do you go about changing items such as the deed and mortgage names? Is this done through an attorney? County? I assume I go to the office where I closed on my house for the mortgage part? Wells Fargo Bank?

Any help that others can give will be greatly appreciated.

Thanks, Jamie

I don't have an answer for you. But, I care about whether your question gets answered. By my posting a response now, your question will get moved more to the top of the list of questions that need to be answered. Hopefully, someone will come along with the expertise to answer it.

Since your question is about taxes, you also might want to consider posting it to the section of this site that concerns taxes. Here is the link: https://www.askmehelpdesk.com/newthr...ewthread&f=320

Someone to ask about this is AtlantaTaxExpert here on the forum. He gives solid answers on money and taxes.

First I do not suggest that you try deducting the driveway. And, if you have kids of your own I wouldn't try with the playset.

You see the problem here is that, if you try deducting anything it has to be used EXCLUSIVELY for the business. If you park your personal car on the driveway that negates that. If you kids use the playset, that negates that.
And if you try claiming part of your mortgage and taxes, then you convert part of your property to commercial usage. This has greater consequences when you go to sell the house. More than the benefit you will get from it.

As for changing the deed and mortgage, start woth your mortgage holder. They would have to agree to any change of ownership.

You can normally on home business only deduct that part of the home that is used "ONLY" for business. So unless there is a separate area not used by the family only the kids.

Quote:

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Originally Posted by ScottGem

First I do not suggest that you try deducting the driveway. And, if you have kids of your own I wouldn't try with the playset.

You see the problem here is that, if you try deducting anything it has to be used EXCLUSIVELY for the business. If you park your personal car on the driveway that negates that. If you kids use the playset, that negates that.
And if you try claiming part of your mortgage and taxes, then you convert part of your property to commercial usage. This has greater consequences when you go to sell the house. More than the benefit you will get from it.

As for changing the deed and mortgage, start woth your mortgage holder. They would have to agree to any change of ownership.

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That makes no sense, that would make negate everything in the house. Furniture, New Front door. I park on the street, the kids only use the playset during daycare hours. That's simple.

What doesn't make sense? I've been running a side biz for 20 years. I've never taken the home office deduction because it just doesn't make sense. I don't use my home office exclusively for the business and even if I did the amount of deduction I would get is just not worth the hassles about it.

I would strongly suggest using a CPA to do your taxes this year and have him run up what ifs showing taking the deductions and not.

What Scott is telling you is 100 percent true, if you are watching the kids in the living room, but it is your living room after the kids leave, you can't deduct it, plain and simple. If you have a swing set that your kids play with in the evening when other kids are gone, you can't claim it.

Just like my home office, I have a room and one computer that is for NOTHING, and nothing else but my church office. If I had it in the dining room, then I could not claim it, since the room is used for some household usage.

The IRS is very strict on this, if you are audited and they discover it, there will be fines, penalties and back taxes.