Do You Have to Include Your Basement and Garage in the Total Square Feet of Your Home?

Answer: Yes. The IRS Child Care Audit Techniques Guide clearly states that your basement and garage must be included as part of the total square feet of your home. Many child care providers use these areas on a regular basis for their business and can therefore count the space in their Space percent calculation.

For example, you might have in your basement: laundry room used for your business; furnace and hot water heater used for your business, storage of household items used for your business (tools, lawn mower, garden items, etc.), etc. This would make your basement regular use for your business.

In your garage you might have: car used for business, garden tools, garbage can, bicycles, and other household items used for your business. This would make your garage regular use for your business.

3 replies

  1. Hello, I always like your site, you have very helpfull information, I have been doing Child Care taxes since 1998, and I agree with you. But now i have a question for you, as far as I know we never count the land foot square as part of the house, I hear from another college that one of her clients/taxpayer , receive an audit and she said that the auditor lady decide to include the land in the side of her house just because her business use was 80%. Do you have any information that will clarify that the land should not be include in the total square feet.?

    I realy apprecitate your help in this matter.

    Regard,

    Elvira Reyes

  2. THANK YOU FOR YOUR CONFIRMATION,

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