My home is 2,000 sq ft. Of that, 800 sq ft is for EXCLUSIVE USE in daycare (never used for personal), 700 sq ft is for REGULAR BUSINESS USE in daycare, and 500 sq ft is NEVER used for business. My Time % is 36%.
I'm having a hard time finding the rules for how Direct and Indirect expenses are applied to Exclusive uses and Regular uses in the same building.
Do I disregard all T/S calculations for any expense that is directly associated to the EXCLUSIVE USE of the home? and I only apply the calculations to the Direct and Indirect expenses associated with the REGULAR USE of the home?
The question:
