Speaking of Time/Space Calculations

[newtodaycare22]

Does anyone use Minute Menu and then Turbo Tax? I'm getting a different percentage when I put my info into one vs. the other...

[TomCopeland]

MM and Turbo Tax

If you tell me what numbers you are entering I may be able to help.

[Abigail]

I want to use MMK and Turbo Tax next year so let me know what happened.

[newtodaycare22]

#s

Total sq ft in home:1583
Sq. ft 100% for business: 145
Sq. ft used regularly for business: 631

Business was in Operation from August 16-December 31st

MMK says 20.39% Time/space percentage

Turbo tax says 13% overall and then 100% of my home office? I'm confused. Maybe I'm putting in the numbers wrong.

[TomCopeland]

T/s%

To be able to answer your question I need to know the number of hours you worked in your home for your business.

[newtodaycare22]

Whoops-sorry to leave that out!

950 hours

[TomCopeland]

Time-Space %

Here's how this works.
Step One: Determine the space % of the exclusive use room -
145 square feet of exclusive use space divided by 1583 total square feet in home = 9.16%

Step Two: Determine the time-space percentage of the rest of the home -
Space %: 631 square feet regularly used divided by 1583 total square feet in home = 39.86%
Time %: 950 hours the home was used for business August 16-Dec 31 divided by the total number of hours in the year in that time (138 days x 24 hours a day = 3312) = 28.68%
Multiply Space% 39.86% times the Time% 28.68% = 11.43%

Step Three: Add together results from Step One and Step Two -
9.16% + 11.43% = 20.59%

So Minute Menu is correct (after all I wrote this section in the Minute Menu software!).

[My Daycare]

Strange, I also use MMK and Turbotax and mine was the same for both.:confused: Maybe because I do not have any spaces in my home that are 100%.

[newtodaycare22]

Thanks so much. I was misinterpreting a part of the Turbo Tax question. It says "daycare area" and "partly daycare" and I was putting the daycare area as the both exclusive area and partly together (too big of a number!) It helped knowing the right number that I had to get it to. Thanks again!

[dEHmom]

ok, hijacking here...

If I work part time basically as daycare, and only open since may last year

Would I calculate the t/s % for each month (since it varies), then add them all together to get an actual percent?

I'm confused here, sorry.

OR, would I calculate the actual hours works in the months I was open, and divide it by the total hours in the year? total hours in the months actually working?

[TomCopeland]

T/s%

ok, hijacking here...

If I work part time basically as daycare, and only open since may last year

Would I calculate the t/s % for each month (since it varies), then add them all together to get an actual percent?

I'm confused here, sorry.

OR, would I calculate the actual hours works in the months I was open, and divide it by the total hours in the year? total hours in the months actually working?

Calculate the actual hours your worked in the months you were open and divide it by the number of hours in the months you were open. Then only count expenses for those months.