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Daycare and Taxes>Hours Calculation Question- When Not Working Full Year)
Lyss 05:16 PM 02-05-2013
When calculating the T/S% I know I need to use the total number of hours in 2012 but I was wondering if this is affected by when I started my business. I began my business in May so do I just count the hours in the year from May to December or the entire year?

I tried to search for this answer but didn't find it, I'm sure there's a post out there somewhere about this!

Thanks!
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Lyss 05:20 PM 02-05-2013
Oops! Found a similar post with answer that I think works for this too! So just verifying here that I use the hours in the months from when I started my business? I don't need to include the prior months (Jan-April)?
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awestbrook713 07:43 AM 02-06-2013
I had this issue last year and yes I only counted the hours from the time I started in the year to the end of the year.
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TomCopeland 10:29 AM 02-06-2013
Originally Posted by Lyss:
Oops! Found a similar post with answer that I think works for this too! So just verifying here that I use the hours in the months from when I started my business? I don't need to include the prior months (Jan-April)?
Yes. Then only deduct expenses after you started your business.
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Lyss 02:17 PM 02-06-2013
Perfect thanks!
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Lyss 04:53 PM 02-06-2013
Also I printed the form 8829 from the IRS and on line 5 it automatically has 8784 entered so I can't edit it for just the hours I was in business. Currently I'm just filling them out (and following the 2012 tax workbook and organizer) as a "practice round" to make sure everything is correct.

Should I cross this out and enter hours as of when my business began last year or is there another way to handle this?
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TomCopeland 11:26 AM 02-07-2013
If you are filing your Form 8829 by hand, cross out the 8,784 number and replace it with the number of hours there were in the year after your business began.

Join me for a webinar “2012 Tax Changes: How to Avoid Mistakes on Your Tax Return” Tuesday, February 12th at 8:30-10:00pm Eastern Time. The cost is $25 (100% tax deductible!). To register: http://events.r20.constantcontact.co...&llr=yatrx4cab
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Tags:deduction - hours, form 8829, tom copeland
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