Deducting Repairs

Family child care providers know how easily household items can get damaged or broken when children are around all day.

The cost to repair these household items is a business expense and can be deducted on either IRS Form 8829 Expenses for Business Use of Your Home or Form 1040 Schedule C.

If you repair something that is attached to your home enter this on Form 8829. Such items can include: painting (inside or out), patching the driveway, installing corner wall guards, plumbing repairs, lead paint removal, tree removal, salt for a water softener, wallpapering, window repair, furnace cleaning, carpet or rug cleaning, etc.

If you repair something that is not attached to your home enter this on Form 1040 Schedule C. Such items can include: repair of a DVD player, service contracts on appliances, recovering a couch, new flashlight batteries, fixing toys, computer repairs, etc.

For all repairs, you can deduct your Time-Space percentage of these costs in one year even if an individual repair exceeded $100. If your day care child broke a window and you replaced it, deduct 100% of the cost. If your own child broke the window, claim your Time-Space percentage of the cost. If you repaint a room every year because the day care children mark the walls, claim 100% of the cost maybe four out of every five years.

Save your receipts for all costs associated with your repairs. If it breaks, fix it and deduct it!

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For more information: Family Child Care Record Keeping Guide.