Since the Home Office for a Daycare business is based on a time and square footage computation, revisit the Home Office Expense Section under Business Expenses. It seems the business percentage of time should be less than 100%.
Follow these steps:
- -Select the Business Tab,
- Business Income and expenses,
- Select Home Office Expense
- Select "Yes" to Daycare Provider..
- Partly is 340 Exclusively is 660 total is 1000
- How may hours per day -12
Special rules apply if you qualify for home office deductions under the day care exception to the exclusive-use test. Your business-use percentage must be discounted because the space is available for personal use part of the time. To do that, you compare the number of hours the day care business is operated, including preparation and cleanup time, to the total number of hours in the year (8,760).
Assume you use 100% of your house for a day care business that operates 12 hours a day, five days a week for 50 weeks of the year. That’s 3,000 hours out of the total of 8,760 hours in the year. That’s 34% of the available hours, so your business write-off percentage is 34%
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