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What percent of your house would you consider that you use for your daycare?
My daycare is the whole main level of my house, I use three bedrooms for nap time, and one room in the basement for play as well. Not sure how i should come up with a percent of how much I use for daycare.
I use amount of rooms that I use for daycare over total amount of rooms in the house. You could do it by square footage (the SqFt you use over total SqFt) but it may have to involve more work like measuring.
My house is designed so you can almost visualize thirds. I use 1/3 of the basement, all of the main level and 1/3 of the bedroom level - two bedrooms.
Sorry to highjack but I am going to TRY to work on my taxes today so... Knowing the % of the house you use will help you to claim some of your mortgage ? Is that how you do it ?? It's my first year as a daycare provider and I probably should find someone to do it for me but I want to try. I"m sure once all my expenses are counted I have made close to nothing this year... it should not be that complicated right ?
I would say I use 1/3 of my house as I well if I go by square footage.
When you look at the T2125 or whatever the number is - forget you just fill out the info on the lines and do the math. Yes you take all of your household expenses like mortgage interest (not the actual mortgage paid just the interest paid), utilities, house insurance (not your daycare ryder part) and those are added together. Then you use the amount of space used out of the total (120 out of 250 in the example below) and then you also have to further reduce that by the hours used so if you work 5 out of 7 days a week and 12 hours out of 24 hours a day you have to add those math equations in there too to get the amount you can can claim for business use of the home.
ex. 120 divided by 250 X 5 divided by 7 x 12 divided by 24 = amount you can claim
That's what I tought !! Good ! Not completly clueless haha. I actually really like doing the accounting part it's just very intimidating this year and I am not very experienced.
Do you use a special program to do your taxes or just the ordinairy turbo taxe program or something like it.
I use 40% of the house. I use 3 bedrooms for just nap and I have 2 rooms that are dedicated daycare rooms, now they do use the other rooms but its more of a pass thru (dinning room, living) and I use the kitchen.
I'm a renter and according to the bylaws of my city you cannot use over 25% of your home for business, so just a warning to any renters to check into that so you don't run into problems.