Magazine article The CPA Journal

Rules Governing Day Care Providers Eased

Magazine article The CPA Journal

Rules Governing Day Care Providers Eased

Article excerpt

Rev. Rul. 92-3 eliminates the need for those who provide day care in their homes to keep records of the specific hours of business use of rooms that are available throughout the business day and which are regularly used for day care, even where the rooms are not used during every hour of the business day. Instead, those rooms will now be considered as used for the entire business day for day care.

Thus, where a day care provider uses a bedroom which is available for child care throughout the business day only for the children's morning and afternoon naps, the room can be considered used for day care throughout the business day.The amount of the deduction allowable under IRC Sec. 280A for the business use of the provider's home for day care should be computed by multiplying the total costs incurred during the year for the home by a fraction consisting of the total square footage in the home that is available for day care use throughout each business day (and that is regularly so used) divided by the total square footage of the home. …

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