Daycare.com Forum
Daycare and Taxes>Speaking of Time/Space Calculations
newtodaycare22 09:51 AM 01-26-2011
Does anyone use Minute Menu and then Turbo Tax? I'm getting a different percentage when I put my info into one vs. the other...
TomCopeland 02:43 PM 01-26-2011
If you tell me what numbers you are entering I may be able to help.
Abigail 03:04 PM 01-26-2011
I want to use MMK and Turbo Tax next year so let me know what happened.
newtodaycare22 05:43 AM 01-27-2011
Total sq ft in home:1583
Sq. ft 100% for business: 145
Sq. ft used regularly for business: 631
Business was in Operation from August 16-December 31st
MMK says 20.39% Time/space percentage
Turbo tax says 13% overall and then 100% of my home office? I'm confused. Maybe I'm putting in the numbers wrong.
Sq. ft 100% for business: 145
Sq. ft used regularly for business: 631
Business was in Operation from August 16-December 31st
MMK says 20.39% Time/space percentage
Turbo tax says 13% overall and then 100% of my home office? I'm confused. Maybe I'm putting in the numbers wrong.
TomCopeland 11:58 AM 01-27-2011
To be able to answer your question I need to know the number of hours you worked in your home for your business.
newtodaycare22 12:12 PM 01-27-2011
Whoops-sorry to leave that out!
950 hours
950 hours
TomCopeland 09:10 PM 01-27-2011
Here's how this works.
Step One: Determine the space % of the exclusive use room -
145 square feet of exclusive use space divided by 1583 total square feet in home = 9.16%
Step Two: Determine the time-space percentage of the rest of the home -
Space %: 631 square feet regularly used divided by 1583 total square feet in home = 39.86%
Time %: 950 hours the home was used for business August 16-Dec 31 divided by the total number of hours in the year in that time (138 days x 24 hours a day = 3312) = 28.68%
Multiply Space% 39.86% times the Time% 28.68% = 11.43%
Step Three: Add together results from Step One and Step Two -
9.16% + 11.43% = 20.59%
So Minute Menu is correct (after all I wrote this section in the Minute Menu software!).
Step One: Determine the space % of the exclusive use room -
145 square feet of exclusive use space divided by 1583 total square feet in home = 9.16%
Step Two: Determine the time-space percentage of the rest of the home -
Space %: 631 square feet regularly used divided by 1583 total square feet in home = 39.86%
Time %: 950 hours the home was used for business August 16-Dec 31 divided by the total number of hours in the year in that time (138 days x 24 hours a day = 3312) = 28.68%
Multiply Space% 39.86% times the Time% 28.68% = 11.43%
Step Three: Add together results from Step One and Step Two -
9.16% + 11.43% = 20.59%
So Minute Menu is correct (after all I wrote this section in the Minute Menu software!).
My Daycare 05:42 AM 01-28-2011
Strange, I also use MMK and Turbotax and mine was the same for both.
Maybe because I do not have any spaces in my home that are 100%.
Maybe because I do not have any spaces in my home that are 100%.
newtodaycare22 09:37 AM 01-28-2011
Thanks so much. I was misinterpreting a part of the Turbo Tax question. It says "daycare area" and "partly daycare" and I was putting the daycare area as the both exclusive area and partly together (too big of a number!) It helped knowing the right number that I had to get it to. Thanks again!
dEHmom 11:37 AM 02-03-2011
ok, hijacking here...
If I work part time basically as daycare, and only open since may last year
Would I calculate the t/s % for each month (since it varies), then add them all together to get an actual percent?
I'm confused here, sorry.
OR, would I calculate the actual hours works in the months I was open, and divide it by the total hours in the year? total hours in the months actually working?
If I work part time basically as daycare, and only open since may last year
Would I calculate the t/s % for each month (since it varies), then add them all together to get an actual percent?
I'm confused here, sorry.
OR, would I calculate the actual hours works in the months I was open, and divide it by the total hours in the year? total hours in the months actually working?
TomCopeland 02:11 PM 02-03-2011
Originally Posted by dEHmom:
ok, hijacking here...
If I work part time basically as daycare, and only open since may last year
Would I calculate the t/s % for each month (since it varies), then add them all together to get an actual percent?
I'm confused here, sorry.
OR, would I calculate the actual hours works in the months I was open, and divide it by the total hours in the year? total hours in the months actually working?
Calculate the actual hours your worked in the months you were open and divide it by the number of hours in the months you were open. Then only count expenses for those months.ok, hijacking here...
If I work part time basically as daycare, and only open since may last year
Would I calculate the t/s % for each month (since it varies), then add them all together to get an actual percent?
I'm confused here, sorry.
OR, would I calculate the actual hours works in the months I was open, and divide it by the total hours in the year? total hours in the months actually working?