how do I allocate home daycare expenses on the Profile T2125? It isn't enough just to insert the sq ft of the home and areas used for daycare.

I have the total home expenses; the area used for the daycare, the # of hrs provided during the day and the # of days a week the daycare is operating.  Using the formula to determine what can be claimed is easy but how to I put it on a T2125 or is there another form I should be using?

Thank you!

Answer

I would use the percentage in the sq ft area.  For example use 100 as the total area of the home and 37 (or whatever number is appropriate) as the business use.  Then all of the home expenses would carry through with that percentage.

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