Home Daycare Time-Space Percentage Worksheet
Use this worksheet to check the math behind a home daycare business-use percentage.
1. Space calculation
2. Time calculation
If the home was available for daycare for the entire year, use 365 days (366 in a leap year). If you started or stopped during the year, use the number of days the home was available for daycare.
Your results
What the percentages mean
Direct shared-area expenses: When an expense relates to an area used for daycare but that area is not exclusive, the time factor may matter.
Indirect whole-home expenses: A common simplified check is the daycare space percentage multiplied by the daycare time percentage.
Space % × Time % = Combined percentage
Quick example check
If a daycare uses 1,200 sq. ft. of a 2,000 sq. ft. home, the space percentage is 60%. If the space is used for daycare 2,500 hours out of 8,760 hours, the time percentage is about 28.54%. The combined percentage is about 17.12%.
IRS Publication 587 explains that a daycare provider who regularly uses part of the home but not exclusively may need to figure the time percentage and combine it with the space percentage. The IRS also provides a Daycare Facility Worksheet for the simplified method. Read IRS Publication 587 →
Print this page after entering your figures if you want a paper copy for your records.