Calculating how much to claim?

[jennnee81]

there is info on the cra website. It's a complex calculation though. I use about 70% of my home for daycare, but when you do the % of time calculated (detailed), it only works out to 21% to write off. I am wondering if there is a work around or another way to calculate cuz it seems really low

[ttremble88]

there is info on the cra website. It's a complex calculation though. I use about 70% of my home for daycare, but when you do the % of time calculated (detailed), it only works out to 21% to write off. I am wondering if there is a work around or another way to calculate cuz it seems really low

How many hours is the 70% used for daycare? I am curious because this is my first year claiming taxes and 21% does seem low for 70%.

[5 Little Monkeys]

there is info on the cra website. It's a complex calculation though. I use about 70% of my home for daycare, but when you do the % of time calculated (detailed), it only works out to 21% to write off. I am wondering if there is a work around or another way to calculate cuz it seems really low

I assume you are referring to the equation (hours open/24 hrs a day) x (days open/7 days a week) x (rooms used for dc/total rooms in hours)? That is the equation you use if you use your whole house for dc and do not have a dc only area.

I use about 75% of my house for daycare but only 50% is dc only. It's the other 25% that I would like to use the formula for and add it to the 50%. I don't know if that is allowed though??

[AmandaKDT]

I have a booklet from Canada Revenue Agency entitled "Using Your Home For Daycare". I read through the section about Business Use of Home Expenses and it doesn't say anything about not being able to claim both 'rooms for daycare use only' and 'Rooms used for both daycare and personal living'. There make very clear statements elsewhere about what cannot be claimed, so I believe they would have done so for this section if it was not allowed. You just have to make sure your business-use-of-home expenses are not more than your net income before deducting the use-of-home expenses.

I will be claiming both types, I plan to do the calculations for each and then add the two together.