daycare owner 01:10 PM 12-12-2011
I understand how to figure my time/space percentages. My confusion comes in this year with some of my areas downstairs being used only for my daycare. I am not sure how to figure my space. (exclusive, partly) My total square footage of my home is 2200 sq ft. I have some rooms downstairs that I have fixed to be used only for daycare hours. (780 sq. ft) This area is not used by my family. So, I figure this will be an area that is considered "exclusive". But I also am still using other areas in my home for the daycare. I prepare food in my kitchen upstairs, I store supplies and toys upstairs, ect... . I know I can claim all of these spaces, I just don't know how to break it up and put it in the correct spot on the tax form. I read that you can claim all areas "exclusive" for daycare use if you use them for storage and regularly, not sure about this though. That's why I am asking. The tax form it asks for the total sq footage used exclusively and regularly for business, regularly for daycare or for storage of inventory or product samples... so what do I put here, my 780 sq ft or my total sq footage used for dc?
Michael 01:11 PM 12-12-2011
daycare owner - Try logging in. I cleared your account. For some reason you never approved your forum confirmation email.
daycare owner 06:58 PM 12-12-2011
I think, after researching online, I know the correct answer. I should enter the 780 sq ft for exclusive (used only for daycare) and the other areas used as partly used areas. My question now is if I use Turbo Tax to file my 2011 taxes, which I think that I can, bc I have all of my other expenses and deductions ready, where do I enter this info? And will it ask me for exclusive used sq ft and partly or shared usage, and then (after I enter my hours) will it figure my time/space or will i need to do that somewhere else? i just want to make sure i enter this correctly.
TomCopeland 12:50 PM 12-13-2011
I'm not sure how Turbo Tax handles exclusive use rooms and regular use rooms in the same home. You may want to first calculate your own t/s% (see my article on how to do this:
http://www.tomcopelandblog.com/2011/...-use-rule.html
Then fill out Turbo Tax the best you can and see if their answer is the same as your answer. If not, contact me directly (651-280-5991) and I'll try to help you walk through it.
Unregistered 12:05 PM 03-01-2012
Turbo tax asks for "partly" and "exclusive" and for "partly" it asks for the number of hours out of the year that the space is used.
TomCopeland 02:50 PM 03-01-2012
Originally Posted by Unregistered:
Turbo tax asks for "partly" and "exclusive" and for "partly" it asks for the number of hours out of the year that the space is used.
"Exclusive" obviously refers to rooms used 100% for business. As to "partly", I'm not sure if Turbo Tax is asking for the total number of hours in the year your home is used for business, or for the number of hours that room is used for business. The answer should be the total number of hours the home is used for business. Enter that number and see what happens.