[Oasfaa] In-home day care question

[Larry Hollingsworth]

Hi Friends,

How do you assess the business value of a day care facility when the day care is in the provider's home? Do you use the business % shown on line 7 of Form 8829 (Expensees for Business Use of Your Home) to calculate the value? I'm wondering if using this percentage times the net value of the home would be a logical approach. Perhaps, this approach might be used for any business in the home. Or on the other hand, since it's the home, do you automatically rule out any business value other than inventory and equipment because we don't count the principle place of residence as an asset? What do you do/think? 

Larry