School Year Only

[LittleExplorers]

I am closed June 2nd to Aug 20 (teacher's kids.) How do you figure time and space? If you don't count those days, how does that effect depreciation? My tax man is saying to count those months in t/s but not any utilities etc from that time frame. This significantly lowers my t/s, but if that's the rule, shouldn't I also get to include expenses those months?

[TomCopeland]

time-space% in summer

I am closed June 2nd to Aug 20 (teacher's kids.) How do you figure time and space? If you don't count those days, how does that effect depreciation? My tax man is saying to count those months in t/s but not any utilities etc from that time frame. This significantly lowers my t/s, but if that's the rule, shouldn't I also get to include expenses those months?

You have a choice. Count all the hours you work in your home during this time doing things such as cleaning, activity preparation, etc. Your time-space% will be lower, but then apply it to 12 months of your house expenses. Second option - don't count any hours working during this time and calculate your time-space % based on the rest of the year. This will give you a higher time-space%, but then apply it to 10 months (or so) that you were open. Whichever ever way works better for you.
I've written an article about this:http://tomcopelandblog.com/will-take-time-off-summer