Claiming hours before dc opens?

[midaycare]

I opened my dc in the spring and I'm wondering if all of the hours I put into the daycare during the winter can be claimed? I spent at least 200 hours remodeling our basement because I did all the work myself.

[TomCopeland]

I opened my dc in the spring and I'm wondering if all of the hours I put into the daycare during the winter can be claimed? I spent at least 200 hours remodeling our basement because I did all the work myself.

If you counted the 200 hours, you would have to divide all the hours you worked in the year by more months in the year, have a lower time-space %, multiplied by higher house expenses. If you only started counting hours in the spring, you would divide all your hours by fewer months, have a higher time-space % multiplied against fewer house expenses.

Do the math to see which way gives you more deductions. I'm guessing you will be better off starting to count hours in the spring.

Here's my article on this: http://www.tomcopelandblog.com/2012/01/how-to-claim-expenses-when-you-arent-in-business-the-entire-year.html

[midaycare]

If you counted the 200 hours, you would have to divide all the hours you worked in the year by more months in the year, have a lower time-space %, multiplied by higher house expenses. If you only started counting hours in the spring, you would divide all your hours by fewer months, have a higher time-space % multiplied against fewer house expenses.

Do the math to see which way gives you more deductions. I'm guessing you will be better off starting to count hours in the spring.

Here's my article on this: http://www.tomcopelandblog.com/2012/01/how-to-claim-expenses-when-you-arent-in-business-the-entire-year.html

Thanks Tom! You're right, I do better to start claiming in the Spring.