TSDaycare 09:24 AM 11-16-2010
Started daycare August 2008-when I had my taxes done for that year, my tax preparer figured up my time/space percentage. I explained to him that I used my ENTIRE house,with the exception of a very small laundry room that is off limits. He then said only a certain percentage of the house can be used according to the IRS-there is a max amount you can use. I think we ended up using somewhere between 70-74%, but I really do use all of my house, if the IRS would like to come in and see that I will gladly show them....
So is there really a maximum on the percentage I can use, because I would like to make sure Im getting the most?
TomCopeland 01:49 PM 11-20-2010
A majority of family child care providers, in my experience, are using 100% of the rooms in their home on a regular basis for their business. There is no IRS limit on how high your space % can be. Ask your tax preparer to show you something in writing from the IRS that supports his position. It doesn't exist. 70-74% is extremely low for most providers. I would recommend that you amend your tax return for 2008 and 2009 and claim a higher space %.