Daycare.com Forum
Daycare and Taxes>T/S% Only Was Open for Half a Year
Nisaryn 11:00 AM 01-23-2016
Hello, I just got my Copeland tax book and was looking over how to calculate my T/S but I was only open from June...how would I calculate for half a year? If I follow the rules using the hours for an entire year I come up with an extremely low number....about 16% for the entire year! Is this correct or should I only use the hours for half a year? TIA for any advice!
Preschool/daycare teacher 12:12 PM 01-23-2016
I believe Tom Copeland has said to only count the months you were providing childcare because otherwise, like you said, you come out with a really low number that isn't accurate for your circumstances. I'm in the same situation, only open for 7 months during 2015.
Thriftylady 01:17 PM 01-23-2016
Don't count the time for the whole year, calculate the number of hours for the part of the year you were providing care.
TomCopeland 11:03 AM 01-24-2016
Originally Posted by Nisaryn:
Hello, I just got my Copeland tax book and was looking over how to calculate my T/S but I was only open from June...how would I calculate for half a year? If I follow the rules using the hours for an entire year I come up with an extremely low number....about 16% for the entire year! Is this correct or should I only use the hours for half a year? TIA for any advice!
Calculate your time-space % for 6 months divided by the hours in the year for 6 months. Then only deduct house expenses for 6 months.Hello, I just got my Copeland tax book and was looking over how to calculate my T/S but I was only open from June...how would I calculate for half a year? If I follow the rules using the hours for an entire year I come up with an extremely low number....about 16% for the entire year! Is this correct or should I only use the hours for half a year? TIA for any advice!