Question About Filing Taxes

[munchkinsmom]

Hi,
I have a ? about filing federal income taxes. If I have a partner and we co-own a daycare outside of our homes do you just divide everything up and file taxes seperate or does one of us have to be the employee and one the employer. Thanks for the help

[Unregistered]

Taxes and Daycare

That would depend on your state. Suggest you contact a a local CPA.

[i do taxes incl daycares]

filing daycare income / partners

you can A) form a partnership - alot of work and not necessary.

B) -i have a couple of businesses that do it this way-
one person - doesn't mater which - does her schedule c claiming all the income and all the expenses. at the end of the form you'll get "net profit". take half this amount and write it off under misc. expenses as labor (a 1099 may be necessary) and the net profit will end up being half what it was. the other person then simply does a sch c with her return and claims the amount that was written off as misc labor. this keeps it simple ~ and isn't that the goal??
hope that helps.