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How do you figure out the percentage?
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Utilities
Use your time-space percentage to determine the business portion of utilities that you can deduct. Utilities include: gas, oil, electric, water, sewer, cable television, propane.
Other house expenses that you can use the time-space percentage include: property tax, mortgage interest, house repairs, house insurance, and house depreciation. -
ok if I use 100% off my house do I take that number and divide that into the total of each utility?Comment
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Utilities
No, even though you use all the rooms in your home for your business on a regular basis - this only represents your space %. You must also factor in your time %. If you worked 11 hours a day caring for children (5 days a week), your time % would be 33%. 33% x 100% = 33% time-space %.Comment
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If I am buying a house knowing the entire lower level is exclusively for daycare use are any of the closing costs an option to save on taxes? You said cable counts, does the bill to install it count as well?
*I do not own a daycare now, but will be opening a daycare once we move. Do I need to be "open for business" before we move in order to count any of the closing costs or anything else if that's applicable?Comment
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