No. There is no IRS rule that limits how high your time-space percentage can be. I have successfully defended providers in IRS audits who claimed a 98% time-space percentage when caring for children 24 hours a day, seven days a… Read More ›
Ask Tom > Time-Space Percentage
No. Some providers argue that if their hours of operation are from 6am to 6pm they ought to be able to count twelve hours when calculating their Time-Space Percentage, even if children are not present for some of the hours… Read More ›
Yes. You must include the garage and basement as part of the total square feet of your home, according to the IRS Child Care Provider Audit Technique Guide. Most providers are using these areas on a regular basis for their… Read More ›
No. You can only count hours spent on business activities while you are in your home (or on your property). That’s because your time-space percentage is used to deduct expenses associated with your home.
No. Count only the space in your home (including the basement) and separate structures such as a garage.