How Do You Figure These Items When Only In Business 6 Mo Of Year?

[Punkin.Butts]

Personal property tax paid dec 31st of each year
Mortgage interest paid monthly
home depreciation claimed on taxes
Real estate taxes paid dec 15th each year
Home owners insurance with Daycare liability rolled into it paid monthly

ex.. my real estate taxes for 2013 are 1815.84.
This is the way I figured it (1815.84/2)*t/s%=claimable amount

Home depreciation (purchase price * t/s%) divided by 39 yrs= divided by 2= 6 months worth of claimable depreciation


I have only been in business for 6 months of the year and my T/s% reflects that so I would only assume that I would be able to claim 6mo worth of those items above?

[TomCopeland]

not in business full year

Personal property tax paid dec 31st of each year
Mortgage interest paid monthly
home depreciation claimed on taxes
Real estate taxes paid dec 15th each year
Home owners insurance with Daycare liability rolled into it paid monthly

ex.. my real estate taxes for 2013 are 1815.84.
This is the way I figured it (1815.84/2)*t/s%=claimable amount

Home depreciation (purchase price * t/s%) divided by 39 yrs= divided by 2= 6 months worth of claimable depreciation


I have only been in business for 6 months of the year and my T/s% reflects that so I would only assume that I would be able to claim 6mo worth of those items above?

I've written an article: "How to Claim Expenses if You Aren't in Business a Full Year."

For home depreciation, you get a depreciation amount based on the month you started your business. If you started in June the percentage to use is 1.391% (after multiply the purchase price by your time-space %).

[Punkin.Butts]

July 22nd...

I've written an article: "How to Claim Expenses if You Aren't in Business a Full Year."

For home depreciation, you get a depreciation amount based on the month you started your business. If you started in June the percentage to use is 1.391% (after multiply the purchase price by your time-space %).

My daycare had it's first kid start july 22nd.. but we started making the set up requirements, lisc. registration etc in june, did interviews etc then too. which do i use as my start up date

[Punkin.Butts]

is my math correct ..

My daycare had it's first kid start july 22nd.. but we started making the set up requirements, lisc. registration etc in june, did interviews etc then too. which do i use as my start up date

Tom.. tell me if I am calculating this correctly please..

Real estate taxes...
1815.63. opened july 22nd.. was open 163 days of the year

163 (days open) divided by 365(days of the year) =44%
1815.63 Multiplied by 44% =798.96 (163 days worth of real estate taxes) multiplied by t/s% (36.23%)= 289.46 (deductible portion for my business)

or did I go a step to far multiplying by my t/s%

[TomCopeland]

start date

My daycare had it's first kid start july 22nd.. but we started making the set up requirements, lisc. registration etc in june, did interviews etc then too. which do i use as my start up date

Your start date for home depreciation purposes is June.

[TomCopeland]

real estate taxes

Tom.. tell me if I am calculating this correctly please..

Real estate taxes...
1815.63. opened july 22nd.. was open 163 days of the year

163 (days open) divided by 365(days of the year) =44%
1815.63 Multiplied by 44% =798.96 (163 days worth of real estate taxes) multiplied by t/s% (36.23%)= 289.46 (deductible portion for my business)

or did I go a step to far multiplying by my t/s%

If there were 163 days from July 22 - December 31st, then this calculation is correct. If you want to start counting from June, your time-space % would be lower and it would apply to more house expenses. You can do it either way.

[Oss_cc]

So, I read the article you linked, Tom. Thanks for that! This forum is a huge help.
I was in business from Jan-June 2014. So if I am reading correctly, I would base my time/space percentage on the total number of hours for just those months rather than the whole year, correct? So my hours worked (1392) would be divided by the hours available from Jan- my close date in June (3888)?

[TomCopeland]

time-space %

So, I read the article you linked, Tom. Thanks for that! This forum is a huge help.
I was in business from Jan-June 2014. So if I am reading correctly, I would base my time/space percentage on the total number of hours for just those months rather than the whole year, correct? So my hours worked (1392) would be divided by the hours available from Jan- my close date in June (3888)?

That is correct. Then you can deduct your time-space % for house expenses from January - June.