For schedule C, running an adult care business in personal home, how best to handle claiming exposes of the home such as utilities? The whole house is available to the adults and meals are prepared for them. Currently has two veterans caring for, not placed by any government agency. The veterans pay caregivers directly.
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Would this be like a childcare business where the hours are used instead of square footage? Or, do the adults live there? -
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if daycare same as kids....if residential then sqft of client's personal room and expense of meals (not labor to prepare meals or common spaces.)Believe nothing you have not personally researched and verified.Comment
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Care is not just duriing the day as the adult(s) receiveing care live in the home and pay the caregivers (homeowners). Adult(s) receiveing care may have own room in the home but has access to other areas, if not whole house. Care providewd 24/7. Cannot use like daycare hours or sq ft. How to best deduct home expenses for business?Originally posted by taxea View PostComment
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Originally posted by TaxprepP View Post
I actually agree with Taxea, and it can be done the same way as regular childcare.
Most likely the clients don't use the caregivers/homeowners personal bedroom. If they use 95% of the entire space and use it 24/7 of the time, the Time/Space percentage will be 95%.
The Tax Court as accepted Time/Space percentages as high as 98%.
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I could be wrong but I don't think the common areas would be considered for deductible purposes. Patient room and, if separate, patient bathroom....or percentage based on total number of occupants in the home for common area. i.e 5 people live there then 20% of common area plus sqft of personal area.Believe nothing you have not personally researched and verified.Comment
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