Daycare.com Forum
Daycare and Taxes>Detached Garage and T/S
magsgma 07:03 AM 04-14-2011
This is too late for this year, but I want to be prepared for next year.
Is a detatched garage to be counted in the T/S % ?
We have a 2 car detached garage. I have the vehicle that I use for daycare in one side (it is separated by a wall) and I have daycare things stored in there as well. On the other side is my husbands classic car and our household tools etc. and lawn items as well as the baby stroller and a few more d. c. items.
Can I claim a detached garage at all? If I can should I claim one side as 100%exclusive and let the other slide or should I count it all and give it a "regular" use percentage.
What about my cellar? The children do not go down there but I have wall to wall day care things down there plus holiday decorations. My washer and dryer and the furnace and water heater are also in the cellar. I literally use ceiling to floor as I hang things up off the floor too, because the floor gets wet when we have heavy rain.
Is a detatched garage to be counted in the T/S % ?
We have a 2 car detached garage. I have the vehicle that I use for daycare in one side (it is separated by a wall) and I have daycare things stored in there as well. On the other side is my husbands classic car and our household tools etc. and lawn items as well as the baby stroller and a few more d. c. items.
Can I claim a detached garage at all? If I can should I claim one side as 100%exclusive and let the other slide or should I count it all and give it a "regular" use percentage.
What about my cellar? The children do not go down there but I have wall to wall day care things down there plus holiday decorations. My washer and dryer and the furnace and water heater are also in the cellar. I literally use ceiling to floor as I hang things up off the floor too, because the floor gets wet when we have heavy rain.
TomCopeland 08:10 AM 04-14-2011
The IRS Child Care Provider Audit Guide (http://www.irs.gov/businesses/small/...206004,00.html) makes it clear that providers must include the space of their garage (even if detached) as well as the space in their basement as part of the total square feet of their home.
In your situation you can count your garage as being regularly used for your business because of the day care stuff and the household items that are used in your business.
You can also count your cellar as regular use space because of all the business items there, even though day care children do not use the cellar.
In your situation you can count your garage as being regularly used for your business because of the day care stuff and the household items that are used in your business.
You can also count your cellar as regular use space because of all the business items there, even though day care children do not use the cellar.
magsgma 09:31 AM 04-14-2011
Originally Posted by TomCopeland:
The IRS Child Care Provider Audit Guide (http://www.irs.gov/businesses/small/...206004,00.html) makes it clear that providers must include the space of their garage (even if detached) as well as the space in their basement as part of the total square feet of their home.
In your situation you can count your garage as being regularly used for your business because of the day care stuff and the household items that are used in your business.
You can also count your cellar as regular use space because of all the business items there, even though day care children do not use the cellar.
That is good to know. So just count as regular use not exclusive (the side that is total D/C items/vehicle ??The IRS Child Care Provider Audit Guide (http://www.irs.gov/businesses/small/...206004,00.html) makes it clear that providers must include the space of their garage (even if detached) as well as the space in their basement as part of the total square feet of their home.
In your situation you can count your garage as being regularly used for your business because of the day care stuff and the household items that are used in your business.
You can also count your cellar as regular use space because of all the business items there, even though day care children do not use the cellar.
I wonder if my tax preparer will choke me if I change my T/S for this year (she is finishing them up tonight)
KEG123 09:41 AM 04-14-2011
What about a shed?
TomCopeland 04:43 PM 04-14-2011
Count your garage and cellar as regular use since you are not using them exclusively for your business.
Don't count a shed as part of your home. If you do, you will have to pay tax on the profit on the sale of the shed when you sell your home. This gets complicated, so ignore the shed as space. You can deduct the cost of the shed if you store business items in it.
Don't count a shed as part of your home. If you do, you will have to pay tax on the profit on the sale of the shed when you sell your home. This gets complicated, so ignore the shed as space. You can deduct the cost of the shed if you store business items in it.
magsgma 06:34 PM 04-14-2011
Originally Posted by TomCopeland:
Count your garage and cellar as regular use since you are not using them exclusively for your business.
Don't count a shed as part of your home. If you do, you will have to pay tax on the profit on the sale of the shed when you sell your home. This gets complicated, so ignore the shed as space. You can deduct the cost of the shed if you store business items in it.
Thanks Tom you have been Most helpful....Count your garage and cellar as regular use since you are not using them exclusively for your business.
Don't count a shed as part of your home. If you do, you will have to pay tax on the profit on the sale of the shed when you sell your home. This gets complicated, so ignore the shed as space. You can deduct the cost of the shed if you store business items in it.
God Bless!