Figuring T/S% for Only a Couple of Months?

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  • MG&Lsmom
    Daycare.com Member
    • Oct 2010
    • 549

    Figuring T/S% for Only a Couple of Months?

    I officially started daycare as of Sept. 3rd. I had 1 steady child for all of Sept & Oct, no one for November, and another child started Dec. 15. I've had drop ins here and there, maybe 2-3x/wk for less than 3hrs at a time.

    If I wanted to write off some home expenses (mortgage, electric, gas) do I still use the whole year for figuring T/S% and the whole year of bills? Or is there a way to do it for each month since it's only 3 months?

    I'm wondering if it's even worth it given the small amounts of time and income. My total income from the year is just under $1800 for 2010. The only expense I have to deduct is my license fee ($100). All food/formula was provided by the parents.

    Even with this income, DH & I made less than 2009 and we got a substantial return last year.
  • TomCopeland
    Business Author/Trainer
    • Jun 2010
    • 3062

    #2
    T/s%

    Count all the hours you did work in 2010 and divide by the number of hours in the year from Sept 3 - December 31. You then enter your house expenses on Form 8829 that you had between Sept 3 and Dec 31.

    You have a lot more expenses than you think: depreciation on all the furniture and appliances in your home, toys, children's stuff etc. Also - cleaning supplies, mileage, house maintenance stuff...
    http://www.tomcopelandblog.com

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