Time/Space Too High?

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  • Unregistered

    Time/Space Too High?

    What is a "common" time space percentage? Our new tax preparer said that our 81% is too high. Last year it was 73%. We use 100% of our home for daycare and/or storage. I work from 7am to 5:30 pm with holidays and a few vacation days. I also did the other time as Tom Copeland has talked about. Maybe mine is on the high side? I'm just curious on others.
  • hwichlaz
    Daycare.com Member
    • May 2013
    • 2064

    #2
    I work 14 hours a day, 4 days a week, and mine's roughly 41%

    Comment

    • NillaWafers
      Daycare.com Member
      • Oct 2014
      • 593

      #3
      That is very high number. I think most are around 25%ish?

      Your Time-Space Percentage is used to determine how much of the cost of items used for both business and personal purposes can be deducted as a business expense. You won’t know what your percentage will be until the end of the year because it’s based on the hours you work over the entire year. Howev


      I guestimated and have you at 37% Time, if you use all your space it would be 100%.

      Your T/S would be around 37%.

      Comment

      • TheMisplacedMidwestMom
        Daycare.com Member
        • Sep 2016
        • 728

        #4
        Originally posted by Unregistered
        What is a "common" time space percentage? Our new tax preparer said that our 81% is too high. Last year it was 73%. We use 100% of our home for daycare and/or storage. I work from 7am to 5:30 pm with holidays and a few vacation days. I also did the other time as Tom Copeland has talked about. Maybe mine is on the high side? I'm just curious on others.
        Maybe I misunderstood how to calculate time/space percentages (I'm very new to all this)... but I only got about 34% for your situation for a typical week. (If this is not how its supposed to be done, please someone point out my errors so I can do mine correctly!)

        7a-530p= 10.5 hours + 1 hour for prep/clean= 11.5 hours a day

        11.5 hours * 5 days per week= 57.5 hours a week

        168 possible hours in the week

        57.5/168*100= 34% time * 100% space =
        34% time space

        Comment

        • Snowmom
          Daycare.com Member
          • Jan 2015
          • 1689

          #5
          Just don't forget any hours you spend doing daycare related things: shopping, cleaning, curriculum prep, interviewing.
          Most of that for me is on the weekend, so I add in that time.

          Comment

          • daycare
            Advanced Daycare.com *********
            • Feb 2011
            • 16259

            #6
            my entire house, excluding the bedrooms are all daycare related. Even one of our bathrooms is, have a small installed toilet.

            Mine is 74%..

            Comment

            • Unregistered

              #7
              I use Minute menu. It says
              Space percentage-exclusive area of home
              1089 sq ft exclusively used in business
              -------------------------------------------- = 73.33%
              1485 total sq ft in the home

              Space percentage- Refular use area of home
              396 sq ft regularly used in business
              ----------------------------------------- =26.67%
              1485 totals ft

              Time percentage
              2768.50 hours home is used for business
              ----------------------------------------------- = 31.53%
              8784 hours in 2016

              Time/Space percentage
              73.33% exclusive area + (26.67% space x 31.52% time) = 81.74% time/Space percentage.

              I plugged everything into minute menu and this is the results it gave.
              I will go through and double check numbers but I'm not sure what would be wrong?

              Comment

              • NillaWafers
                Daycare.com Member
                • Oct 2014
                • 593

                #8
                I think your mistake is you're writing there are areas that are exclusively used for your business.

                Unless you're running your business in a separate home, that number should be pretty small.

                Exclusive business use means you don't use it for ANY other purpose.

                Comment

                • daycare
                  Advanced Daycare.com *********
                  • Feb 2011
                  • 16259

                  #9
                  Originally posted by Unregistered
                  I use Minute menu. It says
                  Space percentage-exclusive area of home
                  1089 sq ft exclusively used in business
                  -------------------------------------------- = 73.33%
                  1485 total sq ft in the home

                  Space percentage- Refular use area of home
                  396 sq ft regularly used in business
                  ----------------------------------------- =26.67%
                  1485 totals ft

                  Time percentage
                  2768.50 hours home is used for business
                  ----------------------------------------------- = 31.53%
                  8784 hours in 2016

                  Time/Space percentage
                  73.33% exclusive area + (26.67% space x 31.52% time) = 81.74% time/Space percentage.

                  I plugged everything into minute menu and this is the results it gave.
                  I will go through and double check numbers but I'm not sure what would be wrong?
                  my house sounds like yours. what are your hours of operation and what are your additional hours.

                  I used to be open 5:30 am to 6pm and I had CRAZY T/S that year

                  Comment

                  • Blackcat31
                    • Oct 2010
                    • 36124

                    #10
                    Originally posted by NillaWafers

                    Unless you're running your business in a separate home, that number should be pretty small.

                    Exclusive business use means you don't use it for ANY other purpose.
                    My time/space is 100% BECAUSE I operate out of a separate home. If I am not working, I am NOT here.

                    Comment

                    • LysesKids
                      Daycare.com Member
                      • May 2014
                      • 2836

                      #11
                      Originally posted by NillaWafers
                      I think your mistake is you're writing there are areas that are exclusively used for your business.

                      Unless you're running your business in a separate home, that number should be pretty small.

                      Exclusive business use means you don't use it for ANY other purpose.
                      I don't know about her, but I actually do have a room in my home that is exclusively for daycare; I'm a single, empty nester & one bedroom is nothing but daycare usage (inc toys & babies sleeping) so yep, I was told I could claim 100% of that particular room. The rest of my home is Time/space usage

                      Comment

                      • NillaWafers
                        Daycare.com Member
                        • Oct 2014
                        • 593

                        #12
                        Originally posted by LysesKids
                        I don't know about her, but I actually do have a room in my home that is exclusively for daycare; I'm a single, empty nester & one bedroom is nothing but daycare usage (inc toys & babies sleeping) so yep, I was told I could claim 100% of that particular room. The rest of my home is Time/space usage
                        Oh well I wasn't saying you can't claim 100%. But if you're actually living in your house 1000sqft/1400 sqft claiming 100% is a lot. That leaves you 400sq ft to use all other times?

                        Comment

                        • sharlan
                          Daycare.com Member
                          • May 2011
                          • 6067

                          #13
                          Mine is generally 37% to 41%.

                          Comment

                          • daycare
                            Advanced Daycare.com *********
                            • Feb 2011
                            • 16259

                            #14
                            Originally posted by NillaWafers
                            Oh well I wasn't saying you can't claim 100%. But if you're actually living in your house 1000sqft/1400 sqft claiming 100% is a lot. That leaves you 400sq ft to use all other times?
                            Mine is almost all daycare. I have 1200 sf and 875sf is all daycare

                            Comment

                            • LysesKids
                              Daycare.com Member
                              • May 2014
                              • 2836

                              #15
                              Originally posted by NillaWafers
                              Oh well I wasn't saying you can't claim 100%. But if you're actually living in your house 1000sqft/1400 sqft claiming 100% is a lot. That leaves you 400sq ft to use all other times?
                              You have a point... Hell my entire home isn't even 780 . The one bdrm I can claim 100% is 130 sq ft inc closet. The rest of my house ( inc my bdrm) I use 12 hrs a day with kids here... it's not a big place

                              Comment

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