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Author like: Light, Audrey L
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1. American Demographics
New Tax Rules for Day-Care Providers
Numbers News, 12,3, March 1992: 8
Cohort(s): NLSY79
Publisher: P.K. Francese 1980-1996
Keyword(s): Child Care; Taxes

Permission to reprint the abstract has not been received from the publisher.

One way to keep up with social trends is to follow changes in IRS regulations. As cultural and family situations change, so do the tax rules. According to a 1988 National Longitudinal Survey of Youth, 28 percent of working mothers with preschoolers used nonrelatives for child care, many in the caretaker's private home. As a latest sign of the times, the IRS has simplified things for people who provide day care in their homes. Those who use their homes for a state-licensed day-care business used to have to keep logs of what rooms were used for how many hours each day. No longer. Any room that is available or used regularly as part of a day-care business is fully counted as a business room. The day-care provider then simply calculates the percent of yearly hours the home is used as a business and the share of total square footage that is used regularly as part of the day-care service to determine the allowable home-cost deductions. This new regulation only makes sense, since kids take up a lot of space. Unlike a computer sitting on a desk in a home office, children tend to spread out and may require the use of a playroom, bedroom, bathroom, and kitchen in the course of their activities. If most or all of your home is fair game for the children you are paid to watch, it's only fair that you are able to deduct the cost of maintaining all those rooms they could potentially mess up.
Bibliography Citation
American Demographics. "New Tax Rules for Day-Care Providers." Numbers News, 12,3, March 1992: 8.