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Daycare and Taxes>Part Time Day Care
Jennifer91 11:40 AM 01-30-2011
I do day care for Teachers in my children's school district only. My daycare is open for 189 days for 10 hours a day. Do I still use the 8,760 as mentioned in Tom's book? or do I base it on a different number since I'm not open year round?

Thanks
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TomCopeland 02:12 PM 01-30-2011
Divide the number of hours you worked by the total number of hours in the year and multiply by your annual house expenses (property tax, mortgage interest, etc.)

Your time-space percentage will be lower than most providers, but you still get to claim a portion of all your house expenses.
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Abigail 03:41 PM 01-30-2011
Tom, is the only exception for using the total numbers of less than a year total for when a provider opens for the first time mid-year? Did that make sense? LOL
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Jennifer91 04:11 PM 01-30-2011
Originally Posted by TomCopeland:
Divide the number of hours you worked by the total number of hours in the year and multiply by your annual house expenses (property tax, mortgage interest, etc.)

Your time-space percentage will be lower than most providers, but you still get to claim a portion of all your house expenses.
Thanks Tom, I have learned a lot from your Tax Companion book...my accountant is going to be so impressed!
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TomCopeland 07:47 PM 01-30-2011
Originally Posted by Abigail:
Tom, is the only exception for using the total numbers of less than a year total for when a provider opens for the first time mid-year? Did that make sense? LOL
It could also happen when a provider closes down for the summer or quits her business before the end of the year.
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Abigail 09:55 PM 01-30-2011
Originally Posted by Jennifer91:
I do day care for Teachers in my children's school district only. My daycare is open for 189 days for 10 hours a day. Do I still use the 8,760 as mentioned in Tom's book? or do I base it on a different number since I'm not open year round?

Thanks
So did you base if off the total number of hours in a year even if you didn't work during the summer?
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Jennifer91 01:48 PM 01-31-2011
Originally Posted by Abigail:
So did you base if off the total number of hours in a year even if you didn't work during the summer?
I guess I don't know for sure. We are closed for the summer, so I think according to Tom's last post I should NOT use the 8,760 hour figure. Not sure if Tom is still reading this post or not, maybe he could clear up my scattered mind.
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TomCopeland 09:16 PM 01-31-2011
In my first answer I wasn't sure whether you were closed for days throughout the year or for the summer. Since you were closed for consecutive days, I'd change my answer and say don't divide the hours you worked by the total number of hours in the year. Instead, divide them by the number of hours in the months you were open. Then only claim expenses for the non summer months you were open.
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Abigail 10:18 PM 01-31-2011
Ok, now I understand. It makes sense to only count hours that you are "open for business" or else our time/space percentages wouldn't be an accurate reflection. Just remember to keep your summer or closed-for-business-months expenses separate so you don't claim them.
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Tags:time percentage; part time
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