2021 Tax Changes Affecting Family Child Care
- The standard mileage rate is $.56 per business mile.
- You can also deduct parking, tolls, business portion of loan interest and property tax.
- The standard meal allowance rate for 2021 is $1.39 breakfast, $2.61 lunch/supper and $.78 snack. Use these rates for all meals and snacks served in 2021 (including meals and snacks not reimbursed by the Food Program) You may deduct up to one breakfast, one lunch, one supper and three snacks per day, per child. No food receipts are necessary. You must keep track of the meals and who you are claiming the meals for.
- You can deduct the business portion of any item in one year, regardless of the cost
- This includes fence, furniture, appliances, swing set, patio
- EXCEPTIONS: house, home improvement, and home addition.
- Depreciate these over 39 years
- You can deduct a repair in one year
- You must always depreciate your home!