Day Care Business Deduction?

When can you deduct a day care business in your own home?

QUESTION: A listener asks if it’s a good idea to use the home office tax deduction if she has a day care business out of her home.

ANSWER: You still should not use the home office tax deduction, even if you run a day care out of your home.  The only exception is if you’re using more than half of the house for this business.  However, for it to meet the IRS’s standard of a home office you have to have one office in one room, used solely as an office, and you can’t use a TV for the kids. (Norm Rollins - tax guy)