Can anyone tell me how the income tax thing works for daycare.

[Rachael]

Thanks 5 little monkeys....I will start saving receipts....so how does one justify which room in their home can be used .....

I think if you are using your bedrooms then you would include them but as you said you don't use them for the full day care day, just two hours and so the calculations would be different. The formula and examples are on the CRA site.

With regards to claiming groceries based on $3.50 but not having receipts - you have to have the receipts.

When I was audited. I had one entry on my spreadsheet which was for $3.00 at the Dollarstore for crafts and I'd lost the receipt. They didn't allow that $3.00 in the audit. No receipt, no claim is their rules. I lucked in as I had missed $4.34 off the business costs elsewhere so they let it go as the net effect was the same-ish