Home Sweet Home Office

Tax deductions extend beyond the home office space. The items that furnish it are tax deductible as well. Even so, it is not a good idea to buy something to save a little money if you don’t need it in the first place.

As year-end draws closer a lot of small business owners take inventory and decide whether to buy supplies, office furniture or electronics. Maybe that three-year-old computer is way too slow. If you replace the computer that old printer won’t work with it. A new cell phone with mobile office capabilities would provide the opportunity to more work outside the office. Laptops have shrunk in size so they are easy to carry along on sales calls.

Desk, desk chairs and even paintings on the walls may be necessary to dress up the home office to welcome clients.

The idea of tax deductions for a home office is not meant to create frivolous shopping sprees. They are intended to help small home businesses improve their efficiency with the idea that they will be successful and will further stimulate the economy.

Personal information is public domain once the garbage can is moved to the curb. It is imperative that your personal information never makes it that far before it is made unreadable.

Unless you want to sit in your home office for hours tearing addressed envelopes and paper with sensitive account numbers into tiny little pieces I suggest that you swing for a shredder. There are shredders and there are better shredders.

The least expensive shredders cut paper into long strips. It would be tedious but those strips could be reassembled. A better shredder crosscuts paper into smaller pieces so that no one would spend the time and effort to reassemble the pieces.

When shopping for a shredder you will find some that will shred just a few sheets at a time and others that will shred many more. The number of sheets is not the issue – it is the final size of the pieces of paper that gives you the value. A complete package would include the ability to shred credit cards and CD/DVDs.

If you use a shedder on a consistent basis you will kick the dumpster diving information thieves to the curb.

Want to save money? Want to save paper? I am going to tell you an easy way to do both. I know what I am talking about because I do it everyday – sometimes several times a day.

PDF files are a great way to save information in a digital form. Documents and photos alike can easily be emailed or printed in hardcopy form. The digital file can be filed into a digital folder just like your paper files are filed into paper folders. In fact I have digital copies of important papers. I name my digital folders the same as my paper folders so little searching is required if I need particular information.

Some of the most important and most used items in my home office are:

· My Computer
· My Adobe PDF writing Software
· Scanner
· Shredder

Printer paper is expensive and so is square footage in your home office. Why spend the money and waste the space on paper that you will probably never look at again. It is estimated that 80% of your files will not be used once they are filed away.

Finding a unique office desk is a challenge. The desk you choose will depend upon the size of your home office. It is fortunate when you find the right desk and you have the room to use it.

Old metal desks are popular. These desks are huge and very heavy. I am amused at the irony – I have one of these desks and I have disliked it for years. Thankfully the desk is located at my business and not in my home office.

I read once that these metal desks can be refinished into a true work of art. Someday I would love to make mine as beautiful as the one I saw in those pictures.

The metal desk was taken to an auto body shop. There it was stripped, primed and painted just as a car would be. The finish was beautiful and very durable. In case you decide to try this yourself be ready to pay several hundred dollars – so pick your color well. The cost will be determined by your location.

The old leather-like top is another story. A furniture restorer may have advice on how to save it. Sometimes treating it with leather softener works but honestly I’d rather just clean it up and cover it with a thick piece of tempered glass. Extra storage space can be found underneath the glass so its function is doubled.

Consider one of these desks when setting up or remodeling a home office. They are plentiful and often can be purchased for very little cash. You will save a relic from the past while making gaining a beauty to use into the future.

You want to sell your home. On television they preach stage it, stage it and stage it. On the shows that I’ve seen the home office is the most disheveled room in the entire house. Why would any potential buyer pay extra for a space that to them is just a cluttered mess?

When a home office is first set up the initial thought is that no one else will see it. Sometimes it is in a corner of the master bedroom or in the guest room. For the lucky ones an entire room is designated for the home office. The problem comes in when you are not willing to invest in good-looking furniture and accessories.

Good-looking does not mean new and expensive. In fact, a desk can be an old refinished table and the printer could rest atop a unique side table made from a piece of glass and two wooden pillars. The most important thing is to match the home office furniture to the style of the rest of the house. Traditional appears to be the most accepted by the most people. If you are unsure how to make your home office look good while being functional visit a large furniture store in your area. Pay attention to how they display home office furniture and use their ideas to form your own.

For those that plan to live with a home office for any length of time, there are other improvements that would make life a lot easier and would bring a return on investment (ROI) of 70% or more. Add dedicated electric circuits and install networking and cable television cables in the walls. Potential buyers will be impressed and will realize what an asset the home office space is.

The bottom line is that there is very little in your home that others will never see. Family, friends and visitors are snoops and they will eventual know about your messy home office. Add value with your home office and increase the livability factor at the same time.

Home office tax deductions should not be overlooked at tax time. Sticking to the rules should not be overlooked either. Qualifying your home office for the deduction may feel like walking a tightrope. In reality good records and truthful reporting is all that is needed.

Both home based business owners and employees can qualify:

· As a business owner – the home office is your principle place of business
· As a business owner – the home office is where you meet clients, customers or patients
· As an employee – the home office is used for your employer’s convenience

The home office tax deduction is figured on a percentage basis. The square footage of the home office is figured into the expenses of the home’s operation. Real Estate taxes to home repairs effects the entire square footage of the home but the home office can only benefit from the space it occupies. (Equipment and other supplies purchased specifically for the home office is figured as separate deductions)

For example: the home has 2,000 square feet living space. The home office occupies 200 square feet of that 2,000. If your utilities ran $1,000 per year each square foot would be worth $2.00. The home office would be eligible for a $400 deduction. This number would be adjusted if the business had less gross income than the total allowed deduction.

Tax rules and regulations change so check with your accountant before taking home office deductions. The Internal Revenue Service (IRS) website is the place to look for clarification and further information on home office deductions.

Collections are common and there is no end to the things that can be collected. The trouble with collections is that often it is hard to distinguish what is actually being collected.

Grouping like items together is the solution to this problem. A collection of black and white photos that relate to each other look best hung together. Don’t stick a color photo in the mix.

Don’t display too many pieces at once. A collection of old cameras is most interesting when only a few are grouped together. If you prefer to have more than one group out at one time separate them by size or color.

Use a theme to display a collection and to tell a story. I have a picture of myself when I was a toddler. I still have the toy I was holding and the clothes I was wearing in the photo. The photo, the toy and the clothes are displayed together so that the connection is obvious.

Displaying a collection in a home office is a great way to add personality to an otherwise sterile space. Adding a personal touch amongst the paper, office supplies and filing cabinets make is easier to walk into the room when you least want to get down to work. Just be sure that you add interest and not mere clutter.

A tote bag may be one of the most important home office items. There is hardly an evening that I do not produce some type of errand for myself to do the next day. Most errands require something to be taken somewhere else. It may be mail, a library book, a borrowed sweater or food coupons for grocery shopping.

How often are things forgotten? This is where the tote bag comes in. But, which tote bag is the best?

· The tote bag needs to large but not too large
· The tote bag needs to be fashionable but not expensive
· The tote bag should be easy to clean

A tote bag should be large enough to carry a few books, files or daily supplies. It should not be too large however. We all tend to load a bag with as much stuff as it will hold. That is not the point. You should be able to carry the bag without the bottom seam ripping out or the handles falling off.

There is no shortage of tote bags in most households. Often they are freebies from stores or organizations and are usually constructed from a light colored cotton fabric. There are usually slogans, names or one liners printed on them. Are these bags functional, yes – are these bags stylish, no. You will always meet people when you look your worst.

The fabric of the tote bag is important. It should be washable or easily wiped off. Tote bags are often set down on the floor, tossed onto a car floorboard or on the ground when we are unlocking doors.

A good example of a great tote bag is the Melange Tote from Crate&Barrel. All requirements are covered. It measures 17.5” x 5” x 18”. It is made of 100% woven vinyl and has understated colored stripes overall. It is suitable for work or for errands. The webbed straps fit over the shoulder and the bag is lightweight.

As the to-do-list grows items needed to fulfill them should be placed in the tote bag. As you hurriedly leave the home office just grab the tote bag and head out without trying to remember what you are forgetting.

We all have our favorite place to work. Would you ever consider working while walking on a treadmill? Before you grin and click away – a TrekDesk makes this possible.

A TrekDesk fits onto most electric treadmills providing a desktop that can hold a laptop, some paper storage and a flat surface to work from. I do not know that I am that coordinated but it is an interesting idea.

It is difficult to fit exercise into a busy day. In my case if I want to exercise I either get up earlier or go to bed later. Most days I get up earlier.

The TrekDesk team reminds potential customers that exercise improves your heart, controls your blood sugar, helps you sleep better at night and helps control disease. I agree that exercise is good for you but I do worry that falling off a treadmill may not be good for you. Just a little distraction could be dangerous.

TrekDesk has taken into account that people get tired as well. They have a “chair” that works with the treadmill desk. It is a big exercise type ball that fits into a specially designed frame that sits above the tread of the treadmill.

This has got to be one of the most interesting home office set ups that I’ve seen. If you want to see a picture of it perform an Internet search for TrekDesk.

The right space for a home office is not always an obvious choice. Spare bedrooms are probably the most used space for a home office. Closets are often re-purposed to accommodate a desk, a computer and some shelves. Some kitchens tables are unfortunately drafted into duty out of necessity.

There is another space that might be just right. If you are one of the lucky homeowners with a staircase the perfect space may be right below the stairs. It is a great space that is tucked away from the direct traffic that flows through a busy house. Still, you are not far away from the action.

Building a home office under the stairs is not rocket science but some precautions are in order. First, if there is already a closet there you are home free. If the space is closed in there may be obstacles that need to be worked around. Be safe about it – but find a way to take a look inside.

If all is clear underneath the staircase it is time to decide if you will build the home office or if you will hire a professional to build it.

TIP: If you hire a contractor be sure to ask for insurance verification. Worker’s compensation insurance is a must to protect you and your family from liability. The contractor should call their insurance company to have them provide you with a copy of the policy.

Assuming that you want to proceed with the project yourself there is something that needs to be first. Hire a structural engineer to verify that you will not be removing a load-bearing wall. Even if you plan to remove three or four studs it is imperative that you home remains structurally sound.

Once you have verified that you can safely remove a few studs plan where and how large you want the opening to be. The size of the opening depends on how much floor space is located under the staircase. Once you decide where you want the opening to be located mark your lines. A chalk line or a laser-line are accurate ways to get straight and level lines.

A reciprocating saw works well to cut away the sheetrock and the studs inside the marked opening.

TIP: Begin by cutting a small hole and check for electrical lines. (Always wear safety glasses)

Remove all sheetrock and studs from the opening. Clean the space completely. Again, check with a contractor before proceeding.

If you want to install lighting you will need an electrician. If you want smooth walls you may need a finish person. There are many steps that can be done by an amateur but know your limitations.