Can you use the home office deduction for in-home daycare?

[nikkibanta79]

It seems like the verbiage has changed this year that and that the home office must be used 100% for work - with no caveats regarding the use of home for daycare (and associated expenses).

[AlanT]

You will include your expenses for the room/rooms that you use strictly for daycare purposes. Most of the time, when deducting home office expenses, the room has to be exclusively used for work purposes only. However, the exclusive-use test does not apply if you use part of your house to provide day care services for children, the elderly or handicapped individuals. If you care for children in your home between 7 a.m. and 6 p.m. each day, for example, you can use that part of the house for personal activities the rest of the time and still claim business deductions. To qualify for the tax break, your daycare business must meet any applicable state and local licensing requirements.