Technical topics regarding tax preparation.
Adult Family Home Business Expenses
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30-Jun-2020 4:53pm

My client is a caregiver and runs an Adult Family Home and is taking care of two residents. My clients lives on site 24/7. I'm trying to do my research but can find zero information on this type of industry, so I have a couple questions:

1 of the residents is paying via medicaid waiver payments, which by my research does NOT need to be included in the revenue. If this medicaid client is one out of the two residents, should I only deduct half of the expenses?

My second question is I have all the expenses spent on groceries and such. Is there a cost per day per resident that can be deductible? Assuming the medicaid client's groceries are not going to be deducted. I'm assuming these groceries are also for my client, which I would assume are not deductible either.

Then if anyone can point me in the direction where I can learn more, that'd be great!
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