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?

Feb 05, 2019

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.
For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Robert D. Hornick, CPA, is with Hornick & Associates LLC in Philadelphia.

Pennsylvania CPA Journal

Read the latest from the Pennsylvania CPA Journal online or via the mobile app and digital edition.

Read More


Get the latest info on professional trends, management, and leadership skills on CPA Now.

Read More

Premier Sponsors

Platinum Sponsors

Gallagher Bollinger Logo

Silver Sponsors

Paychex logo
Capstan Logo
epsa USA

Bronze Sponsors

Fox School of Business, Temple University

Interested in becoming a sponsor? View packages >