Must I include the space of my garage and basement in the total square feet of my home?

Yes. You must include the garage and basement as part of the total square feet of your home, according to the IRS Child Care Provider Audit Technique Guide.

Most providers are using these areas on a regular basis for their business. Here's how a typical provider might be using these areas for their business.

Basement: laundry room, furnace/hot water heater, freezer, food storage, tool bench, household storage, etc.

Garage: car storage, garbage can, recycling, garden hose, wheel barrow, cots, bicycles, outdoor toys, etc.