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Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc.

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Old 01-22-2016, 09:08 AM
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Heidi Heidi is offline
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Default Time Space Percentage with Special Circumstances

Hi Tom!

I normally use MMK to calculate the T/S, but we had a wierd year here, so I don't trust it's right.

Jan-end of April, we had a 2167 sq ft home. 372 sq ft exclusively childcare, 1795 shared. I worked 819 hours (kids here plus cleaning, etc).

May 1-October 15, we moved and our house is 2800 sq ft, with 1200 being exclusive, and the rest1600 shared. Worked 1171 hours. Closed my business 10/17.

Total possible hours for that period is 7272 per MMK.

How do I calculate the T/S?

Also, for shared expenses, do I stop at Oct? Or, do I count all the electric bills, etc, until end-of-year, since the T/S already accounts for closing in October.

Thanks in advance!
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Old 01-22-2016, 10:11 AM
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TomCopeland TomCopeland is offline
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Default time-space %

Quote:
Originally Posted by Heidi View Post
Hi Tom!

I normally use MMK to calculate the T/S, but we had a wierd year here, so I don't trust it's right.

Jan-end of April, we had a 2167 sq ft home. 372 sq ft exclusively childcare, 1795 shared. I worked 819 hours (kids here plus cleaning, etc).

May 1-October 15, we moved and our house is 2800 sq ft, with 1200 being exclusive, and the rest1600 shared. Worked 1171 hours. Closed my business 10/17.

Total possible hours for that period is 7272 per MMK.

How do I calculate the T/S?

Also, for shared expenses, do I stop at Oct? Or, do I count all the electric bills, etc, until end-of-year, since the T/S already accounts for closing in October.

Thanks in advance!
You can't use MM to calculate a time-space % when using two different homes in the same year. You must calculate a separate time-space% for each home. Divide the number of hours you worked in each home by the number of hours in the months you were in the home. Don't count house expenses after you closed in October. Here's an article I've written on this: http://tomcopelandblog.com/how-to-cl...es-in-one-year
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Old 01-22-2016, 01:52 PM
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Heidi Heidi is offline
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Thank you, Tom!

I did look through your blog first, but not hard enough. Thanks for the help.
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Old 01-22-2016, 02:27 PM
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Heidi Heidi is offline
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I had exclusive use areas of each house, too. Forgot to mention that. So, looking at your example, and figuring that in too, could this be right for just the 2nd house, May-Oct?
Time-Space Calculation for 2015

Space Percentage - Exclusive Area of Home
1200 square feet exclusively used in business
2800 total square feet in the home
= 42.86%
Space Percentage - Regular Use Area of Home
1600 square feet regularly used in business
2800 total square feet in the home
= 57.14%
Time Percentage
1990 hours home is used for business
4152 hours in 2015
= 47.93%
Time/Space Percentage
42.86% exclusive area + (57.14% Space X 47.93% Time) =
70.25% Time/Space Percentage

That seems really high, but I did use the whole downstairs (almost half the house) exclusively for daycare, and the upstairs for napping infants, making meals, record keeping, walking babies while others slept, laundry, and planning.
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Old 01-22-2016, 02:41 PM
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Nevermind...just figured out why it was so high.
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