What expenses can I deduct if I operate a daycare facility?

If you regularly use part of your home in the trade or business of providing daycare, you may be able to deduct business expenses for that area even if you also use the same space for non-business purposes.

To qualify for this exception, you must have applied for (and not have been rejected), been granted (and still have in effect), or be exempt from having a license, certification, registration, or approval as a daycare center or as a family or group daycare home under state law.

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