T/S Question

[WImom]

For most of 2014 I had a large section of my 1st floor as 100% daycare and then my basement was all T/S because it was used for storage of toys and materials. In September our remodel was done and I took some of my house back and some of the area that was 100% is now T/S and a large amount of the basement is now 100% and a part stayed T/S%.

How the heck do I figure out my Percentage for 2014? I use MMK so I'm not sure what to enter to have it compute my percent.

[TheGoodLife]

For most of 2014 I had a large section of my 1st floor as 100% daycare and then my basement was all T/S because it was used for storage of toys and materials. In September our remodel was done and I took some of my house back and some of the area that was 100% is now T/S and a large amount of the basement is now 100% and a part stayed T/S%.

How the heck do I figure out my Percentage for 2014? I use MMK so I'm not sure what to enter to have it compute my percent.

I'm sure Tom or someone else will correct me if I'm wrong, but I'm 99.9% sure that if you have used any space even once for non-daycare use, it cannot be claimed "exclusive"- it has to be 100% exclusive 100% of the year. SO you can only claim exclusive use if there's an area of the home that was never used outside of daycare.

[WImom]

This is for 2011 but is what I go off of. (My own kids have their own "rec room" that is not the same space as the 100% playroom for the daycare. (my kids are 10 and 12 so they don't' play in the space))

http://www.tomcopelandblog.com/2011/02/how-to-calculate-your-space-percent.html

[TomCopeland]

time-space%

For most of 2014 I had a large section of my 1st floor as 100% daycare and then my basement was all T/S because it was used for storage of toys and materials. In September our remodel was done and I took some of my house back and some of the area that was 100% is now T/S and a large amount of the basement is now 100% and a part stayed T/S%.

How the heck do I figure out my Percentage for 2014? I use MMK so I'm not sure what to enter to have it compute my percent.

You can only count a space as 100% space if it's used exclusively for your business for the entire year it was available. So, list as 100% that space that was 100% for the entire year, and the rest of the space that was once 100% list as regular use for the entire year.

[WImom]

?? So for example a room was 100% daycare from Jan-Sept. and then in September I changed it back to my dinning room and now use it for both my family and daycare so it's T/S from September to December.

I would make that square footage what for the year? 100% or T/S?

If it's not 100% I will not be happy since even though it's been moved back to a dinning room I think my family may have used it maybe 10 times from Sept to December. I use it for all my daycare prep space, meal prep, my daycare computer is in it, and it's my daycare walkway to outside. I feel like it's way more 100% then it would be T/S.

[TomCopeland]

time-space %

?? So for example a room was 100% daycare from Jan-Sept. and then in September I changed it back to my dinning room and now use it for both my family and daycare so it's T/S from September to December.

I would make that square footage what for the year? 100% or T/S?

If it's not 100% I will not be happy since even though it's been moved back to a dinning room I think my family may have used it maybe 10 times from Sept to December. I use it for all my daycare prep space, meal prep, my daycare computer is in it, and it's my daycare walkway to outside. I feel like it's way more 100% then it would be T/S.

Since the room was not used 100% for your business for the entire year, treat it as a regular use space for the entire year. I hear your complaint about this. However, the tax rule is very strict about what constitutes an exclusive use room. If you used it only once a year for personal purposes, that would mean it's not an exclusive use room, according to the IRS.

Having said that, walking through a room to go outside, does not destroy the exclusive use of the room. Also, if the personal use is only on one side of the room, you can break the room into two rooms (no walls are necessary) and say that one "room" is regular use and the other "room" is exclusive use.