Joleen Rose's Blog
12 Pollard Drive, Millis, MA 02054
The sky's the limit for cloud-based documents and files. Remote working is on the rise. The ranks of independent entrepreneurs are growing. For many, home is a place to live and work.
Here are three elements to consider for your work-from-home space.
1. Choose Your Workspace
Pick a bright spot. Daylight inspires!
Will you be having clients drop in? Aim to choose a spot near an entrance way, apart from your intimate living spaces.
For tax purposes, this spot can be a dedicated room, or a section of a room—as long as there's a clear division between your working and living space. Other storage areas in the home, or partitioned-off space that's fully dedicated to keeping business items, is also square footage to count in the deduction.
Take pictures each year that clearly show the partitions and the business use of the space. Keep your photos with your tax documents.
2. Furnish the Space
Decorate mainly as you would if your work space were in a corporate building. Keep your desk, professional items, and office-appropriate décor in the space. Don't have a playpen (unless your business is daycare) or a dining table in your designated office space.
Bookcases, wall hangings, mirrors, and framed art all look good, and dampen noise from outside your work space. Succulents or crocus bulbs can make excellent office plants and uplift the mood of your work area.
Protect your health while working at home by using an adjustable (sit-stand) desk. Does that sound too industrial for the look you demand at home? Never fear. Gorgeous, adjustable desks that complement your existing furniture do exist on the market. With a little searching, you'll find yours.
3. Declare Your Tax Deduction
Calculate your home office percentage. If your home amounts to 2,000 square feet and your office space covers 500, declare 25% as the percentage. The deduction may not exceed your year's net business profit.
For smaller home office spaces, the IRS has a simplified standard deduction. Take $5 per square foot, up to 300 square feet.
Speak with your tax pro about deducting a home business percentage from your homeowner's insurance, mortgage interest, utilities, and property taxes. Read the instructions, so you know how to plan your tax return.
Putting It All Together
For a tax deduction, your home office must serve as the core of your business affairs, or the place you do the bulk of your work. Whether you already have a home office, or are thinking of creating one, design your space so it fits the IRS tax deduction requirements—even while it uplifts your home, delights your senses, and inspires your best work.
15 Ridge Street, Millis, MA 02054
13 Bogastow Circle, Millis, MA 02054
If you want to purchase a home, it pays to establish a homebuying budget. By doing so, you can enter the housing market with a budget in hand and narrow your search for your dream house.
Now, let's take a look at three best practices to help you create a homebuying budget.
1. Look at Your Finances
Your finances will play a major role in your ability to purchase a home. Thus, you should evaluate your current financial situation closely so you can map out an effective homebuying journey.
Request a copy of your credit report – you'll be glad you did. You are eligible for a free copy of your credit report from each of the three reporting bureaus (Equifax, Experian and TransUnion) annually. Take advantage of this complimentary perk, and you can gain deep insights into your outstanding debt.
If you have outstanding debt, try to pay this down as much as possible. That way, you can boost your credit score, which ultimately will help you improve your chances to acquire your ideal residence.
2. Meet with Banks and Credit Unions
When it comes to buying a home, meeting with banks and credit unions usually is a great idea. That way, you can learn about your home loan options and get pre-approved for a mortgage.
Apply for a mortgage from several banks and credit unions. Then, you can receive various mortgage quotes and select one that suits you perfectly.
Also, don't hesitate to ask plenty of questions during a lender consultation. Banks and credit unions employ friendly, knowledgeable mortgage professionals – all of whom are happy to help you make an informed mortgage decision. Therefore, if you're unsure about whether to proceed with a 15- or 30-year mortgage or can't decide between an adjustable- or fixed-rate mortgage, you can ask these mortgage professionals for expert advice.
3. Consult with a Real Estate Agent
A homebuying budget is tricky to establish on your own, especially if you are entering the real estate market for the first time. Fortunately, a real estate agent can help you plan ahead for all stages of the homebuying cycle.
During a real estate agent consultation, a housing market professional will learn about your homebuying goals. Next, this professional will help you establish realistic homebuying expectations and ensure you can discover a great house at a budget-friendly price.
Of course, let's not forget about the world-class support that a real estate agent provides after you kick off a home search, either.
A real estate agent will set up home showings, keep you informed about open houses and offer homebuying recommendations and suggestions. Perhaps best of all, a real estate agent can negotiate with a seller's agent on your behalf to help you get the best price on a house.
Ready to begin your search for your dream home? Use the aforementioned best practices, and you can craft a homebuying budget and start your homebuying journey.