Time Space Percentage Report (Site-Level)
Time-Space Percentage is the portion of expenses incurred by a family child care provider that can be classified as business expenses for tax purposes. The percentage includes the amount of time the home is used for business and the square footage that is used for business.
Time-Space Percentages is calculated as follows:
- Space Percentage: Divide the square footage used for child care by the total home square footage
- Multiply the Space Percentage from Step 1 by the percentage of time conducting childcare activities
The combined calculation is the Space/Time percentage and reflects the percentage of living space used for business.
Family child care providers can use their space/time percentage for tax deductions on expense items that are partially personal expenses and partially business expenses. For example, homeowners insurance costs can be split between business and person using the space/time percentage.
- Click on Reports from the main site dashboard.
- From the report selection screen, choose the category Financial Reports.
- Scroll down and click on the hyperlink labeled "Time Space Percentage"
- Select the Year
Enter the Total Square Feet of Home
Enter the Square Feet Used Exclusively for Child Care
Enter the Square Feet Not Used Exclusively for Child Care but Used on a Regular Basis to Run Your Child Care Business
Select the Hours Determination:
- Use operating hours to only determine hours when daycare children were present in your home.
- Use operating hours plus manual entries to only determine hours when daycare children were present in your home.
- Use only manual entries to determine hours when daycare children were present in your home.
- Click the green Run Report button to generate a download link.
- Click the hyperlink to Download Report in PDF format.
- The Time Space Percentage is entered in Site Details