Daycare and Taxes>Need Desperate Help Figuring Out T/S Please

lovemykidstoo 11:45 AM 04-08-2018

I need serious help with my t/s%. I have all the measurements, but I just don't know how to do it right. I just bought Tom's book, so once i get it, I will be so much smarter, but for now, can someone show me how to figure this?

As far as my time, I already have how many actual hours I care for children. It is 2,248. That does not take into account anything else that you can claim time for, researching, cleaning, interviews, etc. I do training online, so that's 10 hours a year I do with that also. So I was kinda figuring a total with that of about 2800 hrs a year. Does that seem about right? So that's 32%

As far as my space, this is what I have, but I have zero idea how to calculate it.

According to the township, we have 1,827 square feet in our house. It's a 1 story ranch with basement. We don't use the basement for daycare, but I do have a laundry room down there that I use for washing sheets for the kids, blankets, bibs etc.

That room is 10 X 6, so 60 sq feet

In addition, these are my measurements:

Playroom used 100% exclusively for daycare is 10 X 12 = 120 sq feet

Hall and entrance way is 131 square feet

Living Room 294 square feet

Kitchen/dining 228 square feet

My bedroom which I do planning in the evening, going over records etc. No kids use my room. 180 square feet

My sons room I have a desk in there since he's in school and I do computer work in there. 144 square feet

My daughters room 144 square feet and my own bathroom in my bedroom is 30 square feet. I don't use these 2 rooms at all for daycare.

Main Bathroom 72 square feet

Garage that houses all the outside toys is 676 square feet.

Can someone please help me and show me how to figure this? Thank you so much. This is my last hurdle this year!

As far as my time, I already have how many actual hours I care for children. It is 2,248. That does not take into account anything else that you can claim time for, researching, cleaning, interviews, etc. I do training online, so that's 10 hours a year I do with that also. So I was kinda figuring a total with that of about 2800 hrs a year. Does that seem about right? So that's 32%

As far as my space, this is what I have, but I have zero idea how to calculate it.

According to the township, we have 1,827 square feet in our house. It's a 1 story ranch with basement. We don't use the basement for daycare, but I do have a laundry room down there that I use for washing sheets for the kids, blankets, bibs etc.

That room is 10 X 6, so 60 sq feet

In addition, these are my measurements:

Playroom used 100% exclusively for daycare is 10 X 12 = 120 sq feet

Hall and entrance way is 131 square feet

Living Room 294 square feet

Kitchen/dining 228 square feet

My bedroom which I do planning in the evening, going over records etc. No kids use my room. 180 square feet

My sons room I have a desk in there since he's in school and I do computer work in there. 144 square feet

My daughters room 144 square feet and my own bathroom in my bedroom is 30 square feet. I don't use these 2 rooms at all for daycare.

Main Bathroom 72 square feet

Garage that houses all the outside toys is 676 square feet.

Can someone please help me and show me how to figure this? Thank you so much. This is my last hurdle this year!

lovemykidstoo 12:06 PM 04-08-2018

I need serious help with my t/s%. I have all the measurements, but I just don't know how to do it right. I just bought Tom's book, so once i get it, I will be so much smarter, but for now, can someone show me how to figure this?

As far as my time, I already have how many actual hours I care for children. It is 2,248. That does not take into account anything else that you can claim time for, researching, cleaning, interviews, etc. I do training online, so that's 10 hours a year I do with that also. So I was kinda figuring a total with that of about 2800 hrs a year. Does that seem about right? So that's 32%

As far as my space, this is what I have, but I have zero idea how to calculate it.

According to the township, we have 1,827 square feet in our house. It's a 1 story ranch with basement. We don't use the basement for daycare, but I do have a laundry room down there that I use for washing sheets for the kids, blankets, bibs etc.

That room is 10 X 6, so 60 sq feet

In addition, these are my measurements:

Playroom used 100% exclusively for daycare is 10 X 12 = 120 sq feet

Hall and entrance way is 131 square feet

Living Room 294 square feet

Kitchen/dining 228 square feet

My bedroom which I do planning in the evening, going over records etc. No kids use my room. 180 square feet

My sons room I have a desk in there since he's in school and I do computer work in there. 144 square feet

My daughters room 144 square feet and my own bathroom in my bedroom is 30 square feet. I don't use these 2 rooms at all for daycare.

Main Bathroom 72 square feet

Garage that houses all the outside toys is 676 square feet.

Can someone please help me and show me how to figure this? Thank you so much. This is my last hurdle this year!

BumbleBee 12:57 PM 04-08-2018

Based on your #'s and Tom's blogs, I calculated your t/s% at 33.38%

I don't know what yours usually runs but mine is generally between 28% and 34%

I don't know what yours usually runs but mine is generally between 28% and 34%

lovemykidstoo 01:56 PM 04-08-2018

Based on your #'s and Tom's blogs, I calculated your t/s% at 33.38%

I don't know what yours usually runs but mine is generally between 28% and 34%

BumbleBee 05:31 PM 04-08-2018

Time percentage: 2800 hours worked divided by 8,760 (hours in a year) =0.3196 x 100 = 31.96%

Space Percentage:

Exclusive Use: 120 sq ft divided by 1,827 sq feet = 0.0656 x 100 = 6.56%

Partial Use: 1,533 sq ft divided by 1,827 sq feet = 0.839 x 100 = 83.9%

Time/Space % of home without exclusive use area: 31.96% (Time) x 83.9% (Space) = 26.81% + 6.56% (Exclusive Use) = 33.38%

I used Tom's Blog here: http://tomcopelandblog.com/the-exclusive-use-rule

The partial use square footage I calculated by taking your homes square footage of 1,827 then subtracting the room not used for daycare (144 sq ft) and the bathroom not used for daycare (30 sq feet) as well as the exclusive use area (120 sq feet).

I hope that helps some. I'm not a professional tax person so my calculations could be wrong. There are much more knowledgeable people about this kind of stuff on this forum for sure! I am not one of them. lol

Space Percentage:

Exclusive Use: 120 sq ft divided by 1,827 sq feet = 0.0656 x 100 = 6.56%

Partial Use: 1,533 sq ft divided by 1,827 sq feet = 0.839 x 100 = 83.9%

Time/Space % of home without exclusive use area: 31.96% (Time) x 83.9% (Space) = 26.81% + 6.56% (Exclusive Use) = 33.38%

I used Tom's Blog here: http://tomcopelandblog.com/the-exclusive-use-rule

The partial use square footage I calculated by taking your homes square footage of 1,827 then subtracting the room not used for daycare (144 sq ft) and the bathroom not used for daycare (30 sq feet) as well as the exclusive use area (120 sq feet).

I hope that helps some. I'm not a professional tax person so my calculations could be wrong. There are much more knowledgeable people about this kind of stuff on this forum for sure! I am not one of them. lol

lovemykidstoo 04:50 AM 04-09-2018

I am copying this and sending it to my tax person. Thank you so much BB!!!

TomCopeland 09:54 AM 04-09-2018

Time percentage: 2800 hours worked divided by 8,760 (hours in a year) =0.3196 x 100 = 31.96%

Space Percentage:

Exclusive Use: 120 sq ft divided by 1,827 sq feet = 0.0656 x 100 = 6.56%

Partial Use: 1,533 sq ft divided by 1,827 sq feet = 0.839 x 100 = 83.9%

Time/Space % of home without exclusive use area: 31.96% (Time) x 83.9% (Space) = 26.81% + 6.56% (Exclusive Use) = 33.38%

I used Tom's Blog here: http://tomcopelandblog.com/the-exclusive-use-rule

The partial use square footage I calculated by taking your homes square footage of 1,827 then subtracting the room not used for daycare (144 sq ft) and the bathroom not used for daycare (30 sq feet) as well as the exclusive use area (120 sq feet).

I hope that helps some. I'm not a professional tax person so my calculations could be wrong. There are much more knowledgeable people about this kind of stuff on this forum for sure! I am not one of them. lol

lovemykidstoo 01:39 PM 04-09-2018

This looks correct.

BumbleBee 05:02 PM 04-09-2018

This looks correct.

On a side note, I was pretty stoked to see your reply that my calculations looked correct! thank you so much!

lovemykidstoo 07:11 PM 04-09-2018

Thank you Tom I appreciate you taking the time to answer questions and chime in on this forum.

On a side note, I was pretty stoked to see your reply that my calculations looked correct! thank you so much!