A system and method for managing the creation of objects in a distributed directory service system assigns quotas to entities (such as users, computers, groups) to limit the number of objects each entity is allowed to create and own. For purposes of enforcing the quotas, tombstones generated for deleted objects are taken into account in the calculation of a weighted total number of objects owned by an entity, with each tombstone counted as a configurable fraction of a regular object. When an entity requests a directory operation that will increase the number of objects owned by that entity, the number of system objects owned by that entity is added to the number of tombstones multiplied by the fractional tombstone factor to generate the weighted total, which is compared to the quota of that entity to determine when the requested operation should be performed.