Is on-site childcare tax deductible on schedule C for the business?
I'm curious about on-site childcare from the employer's side. If I buy a building and use 30% of it to provide childcare to employees, I heard that there's a tax credit for it based on IRS 45F, which can provide up to 25% of the expenses as a tax credit.
I have a couple questions.
My first question is - if I take out a loan to buy the building for my business, but I only end up using 30% of the building for childcare specifically, does the loan amount still count for facility expenditures? For example, let's say I buy a building at 300k. I use 2/3 of it for my business, and 1/3 for on-site childcare for employees. Does that mean I can get a credit from the IRS for 100k*0.25=$25,000? Even though I bought the building with a loan?
My second question is - are the childcare expenses tax deductible on schedule C specifically? Or do businesses basically "spend" the other 75% (after they get the tax credit) of the childcare expenses and not be able to deduct them anywhere?
