Business Expenses are things like: 

#1. FOOD (which has a separate way to be calculated.) 

but also...

Equipment, and supplies you use in your daycare. 
Office supplies. 
Cleaning supplies. 
Yard supplies 
House repairs and maintenance. 
House depreciation. 
Land improvements 
Property tax. 
Mortgage interest 
Utilities. 
Insurance, home and liability 
Mileage. 
Things found in your home, such as light bulbs,
pictures, furniture, appliances.

 
IMPORTANT!!!! These things must be related to your
business. If you have a room that is NEVER used by you or the daycare children for a business purpose, then it will not be considered for business use nor will anything in it. 

**IMPORTANT!!! These things are not 100% deductible. 
In order for something to be 100% deductible it has to be exclusively used for childcare business. Most things are shared between personal and business use and there for you must use the time space percentage to determine how much of the value of these things you can deduct. 



The TIME SPACE PERCENTAGE: 

The Time Space Percentage is a formula we can use to determine the business use of shared items in our homes. 

It is figured by : 

Taking 

( the time percent) 
the # of hours home used for business divided by
Total # of hours in a year 

X  (multiply)

( the space percent) 
# square feet in the home used regularly for business divided by Total Square feet in the home 
__________________________________________ 

(you get )    Time-Space Percent 


*** A note about regular use for business when talking
about your home. If you use a bedroom for kids to nap in that room counts, the bathroom counts, any room the kids are in counts, as does any room you store stuff in for your home or business items. The laundry room counts! Most people can count all the rooms in their house, unless you have a room that is never used for daycare and you never do any business related activities in it, for example a Gun Room!