T/S Percentage Questions

[KatiesCorner]

Hi guys! I'll admit, I am woefully in prepared for taxes. My brother owns his own business and when I asked him about taxes when I started my daycare in August he said to just save my receipts and take them to an accountant. Now that I've gotten through the year I understand it takes a little more information

So, in order to figure my space percentage, can I measure my own house to figure square feet used? I'm sure this is a silly question, but I just wanted to make sure.

Also, I have an older house with kind of a loft style upstair area/attic. The heat and AC don't reach it well, so I only use it for storage and an area for my nieces to play epic Barbie games is storing my daycare stuff up there considered daycare use? The children don't go there, but I keep all big toys and extra equipment up there and switch it out when needed.

Thanks in advance guys, I'm feeling a little in over my head at the moment. About 12 years ago, I watched my nephew while my sister worked part time. Her employer, also her FIL, paid for her daycare. At the end of the year, she told me he wasn't claiming the money so I didn't need to either. Sadly, she was wrong, I learned a year later when I then owed almost $2000 to the IRS. I was a teenager and didn't know better. Anyway, on my limited budget it took me over a year of payments to pay off and I'm terrified of owing money again.

[TomCopeland]

questions

Hi guys! I'll admit, I am woefully in prepared for taxes. My brother owns his own business and when I asked him about taxes when I started my daycare in August he said to just save my receipts and take them to an accountant. Now that I've gotten through the year I understand it takes a little more information

So, in order to figure my space percentage, can I measure my own house to figure square feet used? I'm sure this is a silly question, but I just wanted to make sure.

Also, I have an older house with kind of a loft style upstair area/attic. The heat and AC don't reach it well, so I only use it for storage and an area for my nieces to play epic Barbie games is storing my daycare stuff up there considered daycare use? The children don't go there, but I keep all big toys and extra equipment up there and switch it out when needed.

Thanks in advance guys, I'm feeling a little in over my head at the moment. About 12 years ago, I watched my nephew while my sister worked part time. Her employer, also her FIL, paid for her daycare. At the end of the year, she told me he wasn't claiming the money so I didn't need to either. Sadly, she was wrong, I learned a year later when I then owed almost $2000 to the IRS. I was a teenager and didn't know better. Anyway, on my limited budget it took me over a year of payments to pay off and I'm terrified of owing money again.

Measure the total square feet of your home, or use your property tax statement that may list this. Then measure each room that is used regularly for your business (2-3 times per week).

If you store daycare stuff in the attic and use it on a regular basis in your business, count the attic space as regularly used in your space calculation. Having one puzzle in the attic wouldn't qualify it as a storage space for your business, but storing a number of items would.

[daycare]

my garage is my storage for daycare, can I write include that with the size of my house?

[KatiesCorner]

Thank you, Tom!

[TomCopeland]

space

my garage is my storage for daycare, can I write include that with the size of my house?

Yes, you must include the garage in the total square feet of your home. If you use it for daycare storage you may count it as regularly used for your business (exclusively use if only daycare stuff is in the garage).