 |
The Time-Space Percentage |
* The Time-Space percentage is the single most important number to calculate in the family child care business.
* Time-Space formula:
|
Time Percent |
X |
Space Percent |
= |
Time-Space |
* Use this formula to allocate business use of shared business and personal expenses such as:
- House repairs and maintenance
- House depreciation
- Property tax
- Mortgage interest
- House Rent
- Utilities (gas, oil, electric, garbage, water, sewer, cable television)
- House insurance
- Home improvements
- Personal property depreciation (including furniture, appliances, play equipment, computer, TV, VCR, radio, tape recorder, piano)
- Land improvements
- Toys, cleaning supplies, yard supplies
Note: Instead of using the Time-Space percentage, providers may allocate business use for the above items by calculating an actual business use percentage, if they can document their calculation.
This handout was produced by Think Small (www.thinksmall.org).
For Tom’s entire publications visit: NAFCC Store (NAFCC members receive a discount)
Tom Copeland This email address is being protected from spambots. You need JavaScript enabled to view it. Phone: 801-886-2232 (ex 321)
Facebook - http://www.facebook.com/tomcopelandblog
Blog - http://www.tomcopelandblog.com
"Become a member of the National Associaton for Family Child Care, (http://www.nafcc.org/) and receive monthly business e-newsletters, discounts on books by Tom Copeland, IRS audit help, and much more."
