How to Measure Your Home

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How much space you use in your family child care home for your business can make a big difference in how much you might owe in taxes.

Measuring this space just became easier with the new IPhone app Roomscan Pro.

This $4.99 app allows you to quickly measure each room in your home, create a floor plan, and calculate the square footage.

Determining the square footage of your home is an important part of calculating your Time-Space Percentage. Your Time-Space Percentage is used to figure out how much of your house expenses you can deduct for your business.

To calculate your Space Percentage you need to determine the number of square feet you use in your home on a regular basis for your business. You can count a room as regular use if you use it two-three times per week for your business. Children don’t have to be in a room to count it as regular use.

Once you have determined that a room is regularly used for your business you need to know the square footage of the room. That’s where Roomscan Pro can help.

Add up the square footage of space used regularly for your business and divide by the total square footage of your home. The result is your Space Percentage.

What spaces count?

Don’t count your driveway, patio, lawn, or outdoor play area. These aren’t considered part of the structure of your home and so are not part of the total square footage of your home.

Do count decks, porches, garages (even if detached) and basements as part of the total square footage of your home. Many family child care providers use these areas on a regular basis for their business.

Count the area of a closet as part of the area of the room it’s in. IRS rules aren’t clear about whether an unfinished attic should be considered part of the home.

Tom Copeland – www.tomcopelandblog.com

Thanks to Debbie Moore.

Image credit: https://www.flickr.com/photos/uicdigital/


Categories: Record Keeping & Taxes, Time-Space Percentage

4 replies

  1. Should. I measure. Every room separate to total my space used not just the length and width of my house I also use my basement

    • If you regularly use all of the rooms in your home for your business you don’t need to measure each individual room. If only one or two rooms are not used regularly you can measure these two rooms and subtract it from the total square feet of your home, including the basement.

  2. Hi, I have an area of my back yard that I have quartered off with a 6 ft fence that is solely dedicated to the daycare, can this space be counted at time space percentage?