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.
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