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Daycare and Taxes>Square Footage Question for time/space %
JustMe 07:40 AM 01-19-2013
I live in a smallish house, it is considered 952 sq ft according to city records. That amount includes the main level of my home only. Of that space, approx 800 sq ft (I still need to take measurements)was approved for daycare use, and was shared space for daycare and personal use.

Last year, prior to opening my daycare, we did quite a bit of work in our basement so that we could use that area for our daycare room. I would still consider it shared space as my own family now uses this area too. The area that converted in our basement is approximately 500 sq ft. However, the basement is not included in the 952 sq ft total of my house. Therefore I have about 1300 sq ft of space being used by the daycare in my 952 sq ft home.

So should I reconfigure the 952 number to include the total amount of space in our home since redoing the basement, which would make it around 1900 sq ft? Or how else should I go about this? Any help is appreciated!
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TomCopeland 09:53 AM 01-19-2013
You must include the basement as part of the total square feet of your home: 1,900 square feet.

Square footage that is regularly used for day care doesn't necessarily have to be approved by your licensor. In other words, licensing could say that a laundry room was off limits for children, but you could be using it on a regular basis for your business. The IRS would accept a laundry room as regular use, even if it's not approved daycare space.

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JustMe 02:29 PM 01-19-2013
Thank you! I appreciate the information!
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