Ask the Experts: What Counts as Business Time?

Q: I have a question about calculating my Time-Space percentage: Can I include the time (or any portion of the time) that workers spent repairing water damage and performing mold remediation in our kitchen? The kitchen is used partly for child care.

A: That time is not time you spend on your business, so it cannot be counted. However, you can deduct a portion of the amount spent on the repairs using your Time-Space percentage. 

Calculating your Time-Space percentage is important for home-based child care providers. The Time-Space Percentage is made up of a Time Percent and a Space Percent; together, they represent the proportion of your home that is used for business purposes. You can use this percentage to determine how much of your shared business and personal expenses can be deducted as a business expense

We have a spreadsheet that you can use to calculate your Time-Space Percentage. Find it here: https://www.dropbox.com/s/z72tsy272urtvqa/Time%20space%20calc.xlsx?dl=0.

Do you have a question about your Time-Space percentage or any other aspect of your child care business? Reach out to our team, which includes experts like Alison LaRocca, pictured here. Alison has ten years of experience leading strategic planning processes, conducting evaluations, and coaching executives to increase their effectiveness. Recently, she developed the Thrive Pathway© business coaching model for child care providers, which has been deployed for use by over 15,000 Texas providers and is taught throughout the US.