I have not done a daycare before. Can someone please help me with where I enter the hours spent cleaning, doing laundry and meal prepping for a home daycare business. Thank you.
Does your client pay herself?
If you are looking for a specific deduction for that time, no place. If this is the first daycare business you are doing, in fairness to yourself and your client, you might want to do a little research before you dig into the return.
I often use the line "you/your hours are worthless in the eyes of the IRS".
@lyndaj0331 = read up on 'sweat equity'.
I prefer to say that they are like the Mastercard, "priceless."
I think the question might involve Lines 4 through 7 of the Form 8829:
4 Multiply days used for daycare during year by hours used per day
5 If you started or stopped using your home for daycare during the year, see instructions; otherwise, enter 8,784
6 Divide line 4 by line 5. Enter the result as a decimal amount
7 Business percentage. For daycare facilities not used exclusively for business, multiply line 6 by line 3 (enter the result as a percentage). All others, enter the amount from line 3 .
Bob.... possibly.
Not exactly how the OP presented the info, but we know how that goes 😉
Thank you - that was the direction i was leaning. I have done quite a bit of research and just didn't find anything that definitively explained that the hours used could include the time cleaning and prepping.
You asked about "cleaning, doing laundry and meal prepping." The area where clients (children, seniors or disabled) are present certainly must be cleaned, so include those with the hours when they are there. Laundry -- is there a separate room? You might have to calculate that area separately. Likewise, with kitchen.
Make sure the taxpayer is licensed (or doesn't need a license). Otherwise, not eligible for any deductions.
She is licensed. Thank you for the response.
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