A single-owner employee of S-Corp wants to deduct in-home childcare expenses as a business expense on the K-1. There are no other employees and only the owner/employees child participates. There is not a dedicated portion of the home for daycare as only a nanny will be employed as household employee throughout the home. There are no other company employees and no other children are provided for. These childcare expenses would not be ordinary to the line of business but would be necessary for the employee to work full time in the business.

Can the owner deduct the in-home childcare expense as a business expense on the K-1?