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I'm open every day from 6 a.m. to 6 p.m. My nephew, who is one of my daycare kids, frequently stays the night. On average, about 1x a week. Can I claim the hours that he is here at night as my daycare being open for tax purposes? I do get paid for him for him being here during the day- him staying at night time isn't paid though. I do it to help my mother out (who is raising him).
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Many providers care for their relatives. If you aren't being paid for the care, you are treating it as a personal transaction and therefore you couldn't deduct any of the expenses caring for the child or count the hours caring for them.
If you are being paid to care for a relative, it's a business transaction and you can count expenses and hours associated with the child.
In your case, you aren't being paid for overnight care, so this is a personal transaction. Therefore, don't count the hours.
If you offered "free" overnight care to all the children in your program, and other children besides your nephew took advantage of this, then you could argue that the overnight care is part of the service you are offering and you could count the time.
When caring for relatives, the IRS will assume this is a personal transaction unless you can show that you are treating it as a business transaction.
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