Host's taxes for families with kids

[Leslie11]

Hello,

Our tax preparer is trying to figure out how to account for our short-term rental income in our tax return. He thinks that since we are registred with the City and have a business license, we should consider it to be a business (as opposed to passive income?), but then believes that we can't take the childcare deduction because the business is at home. Is this correct? If so, Is there another way to do this so we can take the childcare deduction? In truth, it would be very difficult to do the short-term rental without being able to send our kids to camp, etc. How are other hosts with kids handling this in their tax returns?

Thanks, Everyone.