USE ONLY IRC 280A Disallowance of certain expenses in connection with business use of home, rental of vacation homes, etc.

Jenny plans to run a home day care for children out of the first floor of her two story house this year. She has incurred a number of expenses to get the first floor ready for the daycare and has even signed 12 contracts with local parents to start day care services this year. She has applied for the certification to classify her home as a day care with the state but was rejected because of issues the state had with the day care facility part of her home.

A. Will Jenny be able deduct some portion of her homes expenses related to her day care business this year?

B. Explain in one or two sentences only why you gave the answer to part A using the research resource you found. Make sure to cite the area of the resource you used.