Doggie Daycare

[Kram BergGold]

Client cares for dogs in her home just like someone would do with children. This is called Doggie Daycare. Can she do home office just like a day care provider with children would do?

[TAXNJ]

Don't see....

why not. Sounds similar to income/expenses that Veterinarians have with thier clients to perform services in thier business (excluding the medical aspects)

[Rapid Robert]

Is the question about home office in general (regular and exclusive use), or special usage rules that apply to daycare businesses in the home? The special rules would not apply to animal care business.

[TAXNJ]

That is.....

Is the question about home office in general (regular and exclusive use), or special usage rules that apply to daycare businesses in the home? The special rules would not apply to animal care business.

interesting. When you say " The special rules would not apply to animal care business.", what source is your statement based on? Thanks

[TaxGuyBill]

I agree with Robert.

If the space is used "regularly and exclusively" for business, that is a valid Home Office deduction.

If it is not used exclusively for business, the non-exclusive use daycare provision in §280A(c)(4) only applies to daycare for humans: "the taxpayer’s trade or business of providing day care for children, for individuals who have attained age 65, or for individuals who are physically or mentally incapable of caring for themselves".

https://www.law.cornell.edu/uscode/text/26/280A#c

[Rapid Robert]

interesting. When you say " The special rules would not apply to animal care business.", what source is your statement based on? Thanks

It seems reasonable that the burden should be on you to find where an animal care business is allowed, but OK, I'll bite (pun intended), let's go check the form instructions.

" 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."

So, I'd still like an answer from the OP on which type of home office rules are being asked about, and also, let's find out if taxpayer has a license to operate "a family or group daycare home under state law". If you are going to start arguing that animal care could be considered daycare for licensing purposes, then I have no more to say.

[TAXNJ]

As you....

say "I agree with Robert.

If the space is used "regularly and exclusively" for business, that is a valid Home Office deduction.

If it is not used exclusively for business, the non-exclusive use daycare provision in §280A(c)(4) only applies to daycare for humans: "the taxpayer’s trade or business of providing day care for children, for individuals who have attained age 65, or for individuals who are physically or mentally incapable of caring for themselves".

https://www.law.cornell.edu/uscode/text/26/280A#c"

Note that §280A(c)(4)(A) you state, does not have the words "only applies to daycare for humans".


But §280A(c)(4)(B) may apply. Only the OP has information to make that determination.

[TAXNJ]

When you say....

..... If you are going to start arguing that animal care could be considered daycare for licensing purposes, then I have no more to say.

At present, there does not seem to be a "Federal" licensing however there are many state, county and city (town) license requirements.

"Doggy Day Care" is a growing business. So "Human" Day Care is not the only "Day Care" business.

[TaxGuyBill]

Note that §280A(c)(4)(A) you state, does not have the words "only applies to daycare for humans".

As I quoted before, it says "children, for individuals who have attained age 65, or for individuals who are physically or mentally incapable of caring for themselves".

That means humans, not dogs.

[TAXNJ]

Yes just saying....

As I quoted before, it says "children, for individuals who have attained age 65, or for individuals who are physically or mentally incapable of caring for themselves".

That means humans, not dogs.

when "changing/adding" to a quote the change/addition is usually emphasized. Not necessary to add your words as you did since it was self explanatory.

[Kram BergGold]

From the Poster

First thanks for he responses, they were most helpful. I was referring to a home office deduction based on hours of use not exclusive use.

[taxea]

interesting. When you say " The special rules would not apply to animal care business.", what source is your statement based on? Thanks

Are the dogs cared for kept inside the residence or in the yard?

[Kram BergGold]

Inside

Other than being walked, the dogs are inside.

[TAXNJ]

As long....

Other than being walked, the dogs are inside.

you meet the requirements for the "home office" deduction, it does not matter who is "inside" or "outside" and you are conducting business with as one reply poster mentioned a "certified" human, with or without the client (the animal) in the home office and again, you meet the requirements for the "home office" deduction.

[MAJ]

Home office... The Dogs have the floor

Dang... I'm going to take care of Someones dog (or two) and let them have the run of the whole house and yard. I'll make sure it's 12 hours shifts just to be safe!!

% of use.... BAM!

Good day team.. I hope the world is treating you well. Sorry for my absence...

If you even missed me...