Posts Tagged ‘home office’

Anyone who tells you that working from home is easy obviously does not do so themselves. Amid all the emailing, the phone calls, and the all-important marketing organization can got lost along the way and one morning you find yourself walking into your home office and thinking “What am I going to do about all this mess?”

Some people are born organizers, with a file folder for every need, a stack of pristine white notepaper at their side and a fully stocked and sorted office supplies drawer full of sharpened pencils and extra printer ink refills. Then there are the rest of us. But who has the time to clean when there are so many other things to be accomplished and not enough hours in the day as it is?

Read the rest of this entry »

You can claim a number of quite valuable tax deductions for a home office, but in order to do so it has to meet certain guidelines set by the IRS. For most the IRS will never come anywhere near their house, but in the event of an audit everything needs to be in order.

According to IRS rules your home office must be a part of your house that you use on a regular basis for the exclusive purpose of running a business. That means setting aside a room, or even a part of a room that is visibly set up as an office of some kind.  You must also be able to demonstrate that your home office is your principal place of business or at least that you regularly use it to meet with clients.

If you can meet these guidelines you can then claim part of the general expenses associated with your home such as utilities, rent, homeowners insurance, mortgage interest and even general repairs. For more information on IRS guidelines visit: http://www.irs.gov/newsroom/article/0,,id=108138,00.html

Even if your home office does not meet the IRS standards for “exclusive use” it may qualify as “regular use” and a portion may be tax deductible. In addition, there are various business expenses the self-employed can claim. These can include: Internet connection, a separate telephone line that you use for work, equipment (computer, fax, copier, etc.), basic supplies, office furniture, computer software,  Social Security taxes (1/2 of self-employed contributions), and health insurance premiums. Of course there are certain stipulations to qualify for deductions. Those operating a daycare out of their home or who are not self-employed but, a telecommuter also can benefit from certain deductions. Consult your tax professional and visit the IRS website for additional details.

If you’re sitting at your desk at work, dreaming of working at home, you may be thinking that you will have plenty of free time to pursue hobbies or just relax. While many entrepreneurs do enjoy more time for their families and themselves, it takes quite a bit of planning and discipline to make this happen. Without proper planning, you can easily end up working far more hours than you did at your day job.

One of the most important things to do when preparing to work from home is to establish your own working space. It is important to have a space where you will be free from distractions, and where you can keep important documents and supplies to run your business. Working while sitting on the sofa watching television might seem like a great idea, but your productivity will suffer.

Another important step is to organize your workspace. Without a boss to tell you to keep your desk organize, it can be easy to let things pile up – especially if you are devoting many hours to your business. However, keeping your workspace organized will allow you to work more efficiently, and with less stress. Be sure to take 15 minutes at the end of your work day to file documents, put away supplies, and organize computer files. When you return the next morning, you will be ready to work, instead of spending time trying to find what you need to get started.

A third critical step is to establish your work hours, and stick to them. Find out what time of the day you are the most productive, and set your work hours around that time. If you work best in the morning, set your alarm clock and start working at your scheduled time, just as if you had a boss watching to see if you made it to work on time. If you prefer working from home in the evening, make sure that you have taken care of your other obligations before your scheduled work time.

Finally, set ground rules with your family members or room mates. The other people in your house will need to know that you cannot be disturbed during your work hours. It’s easy for family members to think that just because you are home, you’re not working. Setting ground rules will help minimize interruptions, allowing you to complete your work more efficiently.

While preparing to work from home takes discipline, the rewards of preparation are great. You’ll get to spend more time with your family, engaging in leisure pursuits, or simply relaxing. Since properly prepared entrepreneurs work more efficiently, they also tend to make more money, allowing them to enjoy a lifestyle that most people can only dream of.

Source: Free Articles from ArticlesFactory.com

About the Author: