If you are claiming any part of your house for daycare it is subject to capital gains and rev canada doesn't mind reasonable renos at all but might question over the top finishs for a daycare. (perhaps confer with your accountant) If you are not going to a complete reno it will probably show better to clients to at least have drywall (painted) than partical board and have decent functional flooring and lighting.
We just completed our daycare basement reno and were surprised how happy the dc parents were with what we did on our tight budget. Good luck with your reno.