Should I report the list price of an item I purchased for my daycare business, or the full after-tax amount I paid for it?

by Robert D. Hornick, CPA | Feb 05, 2019
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I am a home daycare provider, and I am currently going through my receipts for possible deductions. For instance, a kid’s toy has $23.99 as the listed price. Do I report that or what is at the bottom of the receipt after sales tax?

Assuming that you are operating as a proprietorship and the item you refer to is an ordinary and necessary business expense for your business, the amount that you paid is the amount of the business expense for tax purposes.
 
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Answered by: Robert D. Hornick, CPA, is with Hornick & Associates LLC in Philadelphia.

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