Addition to daycare??

[momof2cuties]

Hello!
I was wondering if anyone finished off part of their home for the daycare business? I have a small house, BUT have a basement that I think would make a wonderful addition for my kids. I would like to finish it and have my daycare down there. Have a little kitchenette, small bathroom (sink toilet) open space for play. It will however, be a costly expense since I am working with a unfinished space. I'm thinking 10,000. I clearly don't make that much a year and I understand that you can not claim more than you make?? Just wondering if anyone has any suggestions that might help get this in motion for me ex; Grants, tax credits etc.. Thanks so much in advance for your help!

[kidlove]

Not sure on any suggestions!!!! but best of luck! I wish my hubby would let me do an addition either move to basement or turn our attached garage into daycare space. Not proud to admit but I am quite jelous of those of you who do have that extra space. I would LOVE to get it out of MY personal space and give the kids more. Good Luck!!!!

[mimi]

it all depends on the finishs you want and if you already have existing rough ins for kitchen and bath plumbing. The plumbing and electrical will cost you the most if nothing is done. Also consider sound proofing the ceiling and putting in fire retardent insulation. You can go to the reuse centres and see if there are any kitchen and bath fixtures you might like/need. Also get at least 3 references for any work done and be aware of the jack of all trades who say they can do everything. Electrical and Plumbing should always be done by a certified professional. Check with the city regarding any permits and you may have to let your insurance company know work is being done in your home. It pays to have a professional install, tape and mud your new walls, but there is alot of work you can do on your own such as painting and flooring installation and baseboards. Just depends how handy you are. Hope these suggestions help.

[mimi]

Oh and keep all receipts - tax deduction! Another thought. For basement we put in ceramic flooring that looking like hardwood. We also installed heated flooring so its nice and toasty for the kids.

[playfelt]

Bear in mind that revenue canada takes a dim view of finishing rooms and claiming them. You can claim the costs of the room but should you ever sell your house those expenses will be considered capital gains since they were not part of your principle residence. Better to just finish the room and suck up the cost but then claim anything you put into the room that would be replaced such as carpet or shelving, paint for the walls that sort of thing.

Always cheaper if you do it yourself and consider making it child friendly - maybe not the prettiest but certainly usable. Cover walls with cheap board and paint the wood - no need to finish drywall. Use a cheaper carpet but upgrade the underpad for cushioning for instance or use laminates or vinyl flooring not hardwoods. You can get away with an unfinished ceiling if you want to.

To start I would do a small area at the bottom of the stairs and then gradually as time and money allow expand the area. To start still use the kitchen upstairs, etc. and again that will keep costs down. Kids don't need fancy and don't need as much space as some people think so it is doable.

[DCP_But_Momma_1st]

I have a room with attached sleeping room in my basement. It cost about 15000 and then I added a kitchenette later. I didn't write any off, except the kitchen part (1300) We did it when the government was allowing tax breaks for home renos so my dh claimed some.

good luck. It is great to have a dedicated space, and to be able to escape that place.

[momof2cuties]

Thanks guys! My husband does carpentry, My father is an electrician and Grandfather is a plumber so I am VERY blessed in that department! Just wondering if there was any finical aid out there. I'd love to have my personal space back

[mimi]

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.

[Inspired by Reggio]

Ya ~ I would consult with an accountant who specialized in 'home based businesses' ... there are ways to do this without having to do 'capital gains' later when you sell ~ basically breaking it down and writing off the 'start up' costs over the course of several years and so forth verses ALL in one year as well as terminology of is it improvement/addition to the home or 'health and safety repair' for the purpose of the business ... aka if you are going to be using the space for childcare you cannot have exposed installation where children play ~ you would need to rough in walls The addition of a kitchen might be a hard sell cause you already HAVE one of those so adding one for daycare purposes would be an 'improvement' and so forth.

For example when I opened I had to have an additional 'window' put in my playroom as the secondary fire exit to meet the City bi-laws for using that space for business because the other windows were 'window wells' that an adult could not easily 'exit' in a fire ~ myself my boobs would be too big to fit through those So this was not something that was done to my house for an improvement / addition but to meet a health and safety requirement of business ~ it was a business expense so the accountant wrote off 100% of that.

Other things we have fixed or repaired we only wrote off a 'shared use of home' portion of it verses ALL of it because it benefited not only the daycare but our home as well.