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Starting to feel at home...
Another tax question - space to include in square footage
Hello,
Just wondering what you lovely fellow care providers include in the square footage calculation when calculating writeoffs of your utilities, etc.
I was thinking about spaces such as the hallway, stairwell, and foyer. First of all, these are spaces that are used both by my family and child care, so I would only count the time that my child care is in operation. However, they are in use on and off all day, and need to be available pretty much at any point during the child care day for different uses (pick up, drop off, going up and down from the playroom, going in and out for outdoor play, etc.). So would you count that square footage for the full child care day, ie. 9 hours, because that space needs to be available for the full day, or just the certain part of the day that they are ACTUALLY in use, ie the time actually spent in that space?
For other rooms in my house, that are only used for naptime, I am only counting the part of the day that the room is being used for child care.
Or am I being a little too detailed in my calculation here... it's my first time doing my own taxes :-)
Thanks all in advance!
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Expansive...
I use rooms used for daycare Vs total amount of rooms in the house since I think this is a less complex approach. All daycare spaces are dedicated, so I do not have to calculate hours used during the day. I do not consider halls, stairs, etc.
You can also calculate % of square footage. If you want to be very accurate you could do what your are thinking on doing and measure all rooms, halls, etc. and add approx. hours of transition spaces usage to your formulas
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Sorry can't help. Ask your accountant what would be the best as far as calculating space for daycare.
For myself my whole basement is used for daycare only so I can claim 50% of my household expenses.
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Expansive...
I write off 100% of my dedicated daycare playroom for every hour of the day because it is ONLY used for daycare. That's over 350 square feet. Plus I write off 100% of my basement washroom and closet space because that is also dedicated to daycare. Then I also write-off ALL of my main floor for the hours I do daycare because, like you said, I use ALL of my main floor at different times during the work day for daycare purposes.
So, to conclude, I write off about 375 square feet at 100%. And then I write-off another 850 square feet for 36 hours a week (my working hours). I have a very good accountant who has never scoffed at those numbers.
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