This came up at a local CCPRN daycare tax workshop with an accountant. I don't remember the EXACT details but essentially you NEED to live in the daycare to be a home daycare. If you don't live onsite you are not self employed in a home business, but rather are running an out of home business with very different rules. Something like that.

I would strongly suggest finding an accountant or calling CRA. I don't believe it is allowed.