On things specific for the daycare yes you can depreciate those and there is a form to fill out in the tax package and you put in the percent personal and the percent daycare such as a couch kids use for an hour of tv after lunch is figured out accordingly and you depreciate the daycare portion - actually it is more a case of you can only claim a portion of the cost each year till you have claimed the portion.

Would love to see the article on inventory for home daycare because it doesn't really make sense since we claim our things as bought ie toys, supplies, furniture for daycare. Personal family items can be partially claimed in the year bought but not year after year again just continue with the part claim according to the form - capital cost allowance.

If you have items in the house that you use for daycare you can sell those to the daycare such as playpens, toys, sheets, pillows your family is no longer using then they become the property of the daycare and you claim a cost equivalent of buying a similar item at a garage sale/thrift shop.