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Daycare and Taxes>Time/Space % when an addition is added in the middle of the year
Unregistered 01:12 PM 08-27-2014
How do you calculate the time/space % when you put an addition on, which is exclusively used for the daycare, during the year? Our home was 1800 sq feet and we used all 1800 sq feet for the daycare, thus 100% for the first 10.5 months of the year. Then, in November, we added 600 sq feet for the daycare at 100% usage, making our home 2,400 square feet, but no longer use all of the house for the daycare...our regular use percentage dropped to 1000/2400 or 41.67% after November 25. Any suggestions for figuring out the time/space percentage would be greatly appreciated.

One last question...my husband built the addition by himself. Can his hours of construction be added to the total daycare hours?
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TomCopeland 03:00 PM 08-27-2014
Originally Posted by Unregistered:
How do you calculate the time/space % when you put an addition on, which is exclusively used for the daycare, during the year? Our home was 1800 sq feet and we used all 1800 sq feet for the daycare, thus 100% for the first 10.5 months of the year. Then, in November, we added 600 sq feet for the daycare at 100% usage, making our home 2,400 square feet, but no longer use all of the house for the daycare...our regular use percentage dropped to 1000/2400 or 41.67% after November 25. Any suggestions for figuring out the time/space percentage would be greatly appreciated.

One last question...my husband built the addition by himself. Can his hours of construction be added to the total daycare hours?
Use 2400 as the total square feet of your home. Once you have an exclusive use room, your time-space % will go up.

Here's your situation: 600/2400 = 25% exclusive use room
1800/2400 = 75% regular use space %
If we assume your time percent is 40%: 40% x 75% = 30%
30% + 25% = 55% That's your time-space %

Yes, count the hours your husband built the exclusive use space in your time %. If the addition was regularly used, instead of exclusively used, you wouldn't count any of the time.
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Unregistered 06:23 PM 08-27-2014
I'm still a little confused and need clarification. Originally, I had an 1800 sq ft home. Now that I put on the 600 ft addition, I have a 2400 sq ft home. Although the kids used the whole 1800 sq ft at the beginning of the year, at the end of the year, once the addition was put on, the kids no longer have reign over the whole 1800 sq ft part of the home...they only use 1000 sq ft of the original home plus the 600 sq ft exclusive use addition. So, wouldn't my calculations look like this?

600/2400 = 25% exclusive use room
1000/2400 = 41.67% regular use space %
If we assume the time percent is 40%: 40% x 41.67% = 16.67%
16.67% + 25% = 41.67%

If you tell me your original calculation is the way it is supposed to be, I'll go with it. I like your 55% calculation better than my 41.67% calculation :-)

Thanks for your help, I really appreciate it!
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TomCopeland 06:35 AM 08-28-2014
Originally Posted by Unregistered:
I'm still a little confused and need clarification. Originally, I had an 1800 sq ft home. Now that I put on the 600 ft addition, I have a 2400 sq ft home. Although the kids used the whole 1800 sq ft at the beginning of the year, at the end of the year, once the addition was put on, the kids no longer have reign over the whole 1800 sq ft part of the home...they only use 1000 sq ft of the original home plus the 600 sq ft exclusive use addition. So, wouldn't my calculations look like this?

600/2400 = 25% exclusive use room
1000/2400 = 41.67% regular use space %
If we assume the time percent is 40%: 40% x 41.67% = 16.67%
16.67% + 25% = 41.67%

If you tell me your original calculation is the way it is supposed to be, I'll go with it. I like your 55% calculation better than my 41.67% calculation :-)

Thanks for your help, I really appreciate it!
There are no IRS guidelines for how to treat a room that is regularly used for only part of the year.

It sounds like you are saying that the 1800 square feet were used regularly for ten months. If so, then my calculation is correct (since you used it regularly for the majority of the year) and your calculation would be correct for 2015.
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