COPYRIGHTED MATERIAL 34 Family Child Care Tax Workbook and Organizer Your Business Expenses Start by entering your business expenses in the categories below, then transfer the amounts to the indicated lines on Schedule C. (See the Record-Keeping Guide for a list of more than one thousand deductions.) Advertising ___________ Enter on Schedule C, line 8 Liability insurance ___________ Enter on Schedule C, line 15 Legal and professional services (for your business) ___________ Enter on Schedule C, line 17 Business taxes and licenses (payroll taxes and child care licenses) ___________ Enter on Schedule C, line 23 Business travel expenses (vehicle expenses go on line 9) ___________ Enter on Schedule C, line 24a Business meals and entertainment ___________ Enter on Schedule C, line 24b Wages (paid to both family and nonfamily employees) ___________ Enter on Schedule C, line 26 Your expenses may be 100% deductible or partly deductible, based on either the Time- Space percentage or the actual business-use percentage: • 100% business use: Items that are never used for personal purposes after business hours. Do not claim something as 100% business use unless it meets this qualification. • Time-Space percentage: Items that are used for both business and personal purposes. To calculate your Time-Space percentage, see pages 29–33. • Actual business-use percentage: Items that are used extensively but not exclusively for business purposes. Calculate the percentage of time that the item is actually used in your business (each item will usually have a different business-use percentage). You must have written records to show how you arrived at each business-use percentage. Most providers reserve this method for more expensive items that they use consider­ ably more than items in their Time-Space percentage. For each business category that follows, enter your expenses: Credit Card Interest 100% business use Time-Space percentage $__________ x ______% = Actual business-use percentage $__________ x ______% = Enter the total on Schedule C, line 16b COPYRIGHTED MATERIAL $ ________ + $ ________ + $ ________ = $ ________