don't make like a business decision. If you need the house, buy it and enjoy.
On the other side, business is business, buy a tax SW to report for you. They will generally ask for anything to deduct so you got reminded as well. It is better than to ask general questions and make assumptions without real numbers.
Your 1K is income no matter if you rent or buy. Your 2K is cost no matter if you rent or buy. The difference might be if you can claim your whole house to be for business only. It is generally very difficult to say you buy a 4,000 sqft just for 2 kids' day care.
Combinint with W2 will make it more complicated ... buy a Taxcut or turbotax and try it out to see which way is better ... or find a CPA.
