Time Space % Too High??

[daycare]

My CPA called to tell me that my TSP is too high. Last year it was at 46%.

would you consider that too high and if so what is the average that I should be claiming. OR what would be the justified amount to claim?

[MarinaVanessa]

Mine for last year was 34% and that included every room in my home except our spare room and garage as well as time for cleaning, school and home work for a child development class and planning a curricullum.

[Michael]

More here: https://www.daycare.com/forum/tags.p...eduction+limit

[daycare]

ok I really need to play around on this site and learn to find these answers.

You guys have been awesome in helping me and I really appreciate it a lot.

thanks MV and Michael...

[kitykids3]

Mine for the last 2 years I have owned my house has been right around 53%. However, I have heard that average is about 35%, plus I have 2 levels in my home in which one is used exclusively for daycare and then I use portions of the other level for partial use for daycare.
It would all depend on your specific situation.

[EntropyControlSpecialist]

Mine is at 35% and I use around 900 st. feet exclusively for daycare and the remainder of my 2800 st. ft. house in some way (minus my child's bedroom).

[sharlan]

Mine is 34%. I do not use any of my upstairs for daycare.

[TomCopeland]

Originally Posted by daycare

My CPA called to tell me that my TSP is too high. Last year it was at 46%.

would you consider that too high and if so what is the average that I should be claiming. OR what would be the justified amount to claim?

No, your time-space % is never too high as long as you have the records to support it. I've won IRS audit cases where the provider had a time-space % of above 50%. I've got a current case where the provider is claiming a time-space % of 98% because she has children present 24 hours a day. The appeals officer was willing to give her 52%, but we will fight for a higher % in Tax Court.

Keep good records and claim whatever the numbers reveal. Don't listen to someone who says it's too high.

[daycare]

Originally Posted by TomCopeland

No, your time-space % is never too high as long as you have the records to support it. I've won IRS audit cases where the provider had a time-space % of above 50%. I've got a current case where the provider is claiming a time-space % of 98% because she has children present 24 hours a day. The appeals officer was willing to give her 52%, but we will fight for a higher % in Tax Court.

Keep good records and claim whatever the numbers reveal. Don't listen to someone who says it's too high.

thanks for responding and giving me comfort. The entire bottom part of my house (the whole first floor) is 100% daycare use, however, since my front door and kitchen is there I still have to claim T/S %..

I will keep it as is and hope for the best. I have great records, as I input my claims for time and expenses daily

[suehelen]

Mine was 46% last year and that was low compared to previous years. Mine has always been above 50%.

[EAP]

Glad I saw this post, mine is around 44% and I only have 1/4 of my home that is 100% business, I use MMK pro and love keeping track of all our extra time spent doing things for the business, which is a ton.