Klarinet Archive - Posting 000537.txt from 1998/06

From: "Mark Charette" <charette@-----.org>
Subj: Re: [kl] deducting lessons $ for a child
Date: Mon, 15 Jun 1998 22:37:45 -0400

From: David C. Blumberg <reedman@-----.com>
>Here's a good one.... I got a call from a future student's parent to sign
>her up for lessons. Upon calling them back, the dad tells me that he wants
>to deduct the cost of the lessons (for 12 yr old) on his income tax, under
>child care! I said to him that it is not possible to deduct the expense,
>and I wouldn't go along with it. I explained that even my University
>students can't deduct the expense. The guy persisted, saying that if I
>claim the income, I have nothing to worry about. I don't buy that. Seems to
>me like an invitation to trouble.

Going through my business tax law and personal tax law books:

_You_ won't get in trouble - but he will. You are not a qualified child care
center; in this state you'd have to be licensed to be a child care center -
your state may vary, but you'd at least have to have put "child care" on
your business type on your tax form (or DBA) to be claimed as a child care
deduction on someone else's form.

You aren't able to stop the parent from claiming a child care deduction, but
you cannot support him if it goes to court.

Cheers,
Mark C.
charette@-----.org

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