Yes good point Playfelt - ultimately we just need to be able to argue your expense as 'reasonable' ... the equation I offered was based on the tax seminar I attended at my local OEYC and the using the same equation as business hours open is just one accountants 'interpretation' of a grey area rule ... someone who is very 'cautious' to say the least cause he said claiming more than $2.50 a day for food was 'excessive' and you better have reciepts to back anything more than that up for both your home and daycare ... dude obviously did not do the grocery shopping in his house or assumes kids only need to eat bread and butter cause I average about $18,000 - $20,000 a year just in GROCERIES between home and business and there is just me and my spouse living here full time - kids are grown and no grandchildren yet

As I do not have young children or grandchildren of my own at home to be buying toys for I would not be buying toys at all - so I write off 100% of my toys and equipment as daycare.