Closing Daycare - Starting Babysitting

[Fool78]

Hi. I’m not sure how to claim my home depreciation for being open only 5 months in 2019. Do I change the percentage for depreciation of home on Form 8829 to the August percentage as that relates to 5 months in business?

Background: I watched 1 child full-time last school year. Since it was full-time, I claimed business expenses and reported my income as a daycare. I stopped watching him at the end of the school year. Now I watch him about once a week for an hour or 2. Since this is infrequently, I am planning on reporting this as babysitting income. Is this correct?

[284878]

Originally Posted by Fool78

Hi. I’m not sure how to claim my home depreciation for being open only 5 months in 2019. Do I change the percentage for depreciation of home on Form 8829 to the August percentage as that relates to 5 months in business?

Background: I watched 1 child full-time last school year. Since it was full-time, I claimed business expenses and reported my income as a daycare. I stopped watching him at the end of the school year. Now I watch him about once a week for an hour or 2. Since this is infrequently, I am planning on reporting this as babysitting income. Is this correct?

If you are still in your home, Then it's still a Daycare.
If you are in their home then they may have to treat you as an employee and pay taxes on your behalf. However I'd wait for Tom Copeland to weigh in because I could be wrong.

[TomCopeland]

Originally Posted by Fool78

Hi. I’m not sure how to claim my home depreciation for being open only 5 months in 2019. Do I change the percentage for depreciation of home on Form 8829 to the August percentage as that relates to 5 months in business?

Background: I watched 1 child full-time last school year. Since it was full-time, I claimed business expenses and reported my income as a daycare. I stopped watching him at the end of the school year. Now I watch him about once a week for an hour or 2. Since this is infrequently, I am planning on reporting this as babysitting income. Is this correct?

You are a child care provider entitled to depreciate your home. Add up all the hours you worked in your home for the five months and divide by the total number of hours in five months. Multiply this by your space % and apply your time-space% to house expenses for five months. Change the number on line 5 of Form 8829 to reflect the number of hours in the five months you were in business.