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

# hours home
used for business
Total # hours
in a year

X

Space Percent

# square feet of home
used regularly for business
Total # square percentage
feet in home

=

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).

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