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March 17, 2024
Question

What type of expense is food purchased for a home childcare business?

  • March 17, 2024
  • 1 reply
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I run a home daycare and would like to know how to deduct the amount spent on groceries, specifically food, purchased for the children.

    1 reply

    March 17, 2024

    As per the Canada Revenue Agency (CRA):

    You can deduct any reasonable expenses you incur to earn your daycare income.

    Regarding expenses related to Office stationery and supplies, you can deduct the cost of the following:

    • supplies, such as toys, books as well as arts and crafts items that the children in your daycare use
    • household supplies that the children in your daycare use, such as blankets, towels, toothbrushes, diapers, and shampoo
    • food you buy to feed the children in your daycare

    Report the total expenses for supplies and food on line 8811 of Form T2125, Statement of Business and Professional Activities.

     

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