If my master bedroom is used to keep my dogs separate from the children (a licensing requirement) can I include the square footage in my time/space percentage?
We purchased $4055 worth of new appliances in 11/11 (fridge, stove/oven, dishwasher) my license date is 4/5/12 so how do I determine the fair market value on essentially brand new appliances? Also do include the sales tax in the price?
TomCopeland 01:15 PM 02-24-2013
I wouldn't count your master bedroom as regularly used for your business just for keeping your dog away from the children. You could count this bedroom if you had a computer, desk, files, etc. that you used for your business.'
How to estimate the fair market value of appliances that are about 5 months old? It's a guess. Maybe, $3,500. Yes, include the sales price.
Thank you!
I looked at when we accepted delivery of appliances and it was mid December so they were 3 1/2 months old so I'll add a little more to the fair market value I guess.
brownbeth99 02:17 PM 03-23-2013
I was told in a childcare tax class that I could claim my master bedroom and bathroom in my time/space percent because I use that space to get ready in the morning. And I walk through that space in the morning to get to the rest of my home where I do daycare. Is this true?
If I use the closet in a spare room to store daycare supplies, is the whole room counted in the time/space calculation or just the size of the closet?
TomCopeland 02:55 PM 03-23-2013
Originally Posted by brownbeth99:
I was told in a childcare tax class that I could claim my master bedroom and bathroom in my time/space percent because I use that space to get ready in the morning. And I walk through that space in the morning to get to the rest of my home where I do daycare. Is this true?
If I use the closet in a spare room to store daycare supplies, is the whole room counted in the time/space calculation or just the size of the closet?
In my opinion you shouldn't count your bedroom simply because you use it to get ready for your business or because you walk through it. Your personal clothing and grooming expenses are not deductible. In the same way, getting ready for business is not using the room for business purposes. It's still personal use of the room. Walking through a room while working does not make that room a business room. There is nothing in writing one way or the other on these points, but that's my opinion. I think the IRS would agree with me.