You would include any subsidies such as provincial or territorial grants in your total income, unless you received a grant to buy a daycare property. That amount is not part of your income. Instead, subtract the grant from the capital cost of the property that you bought with it.
You can claim your home daycare equipment in one of two ways. If the equipment was not expense, you can claim it as an “Other Expense” in the expenses portion of the Self-Employment part of the TurboTax interview. However, if the equipment was expensive, you can claim it over several years by using capital cost allowance (CCA).
This Canada Revenue Agency (CRA) page lists many common CCA classes: Classes of depreciable property
If you are using TurboTax Self-Employed Online 2021, you can your home daycare income and expenses by clicking on Income, then Self-Employment, then Self-Employment Intro in the left-hand side menu.
From there, you can continue through the interview, and you will eventually get to the expenses section, where “Other Expenses” will be at the end. After this, you’ll get to the “fixed assets” (CCA) section where you can enter your equipment as additions.
For more information, please see TurboTax article Filing a Tax Return for Your In-Home Daycare
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