Decor Tips for Working From Home

by Carolyn Andrews 08/09/2020

Photo by RawPixel via Pixabay

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. 

About the Author
Author

Carolyn Andrews

Carolyn Andrews has over 30 years licensed Brokerage experience in both California and Colorado. Born in England, Carolyn moved to California in 1980, then relocated to Denver, Colorado in 1991. Carolyn has also received recognition for Top Sales at RE/MAX Alliance Aurora in 2007-2008 and is a member of the RE/MAX Hall of Fame & Chairman’s Club, as well as a recipient of the ReMax Lifetime Achievement Award. Carolyn has sold over 2000 homes personally in her career. Carolyn has been actively involved in many aspects of the Real Estate business including investment property, luxury homes, mountain resort property, skiin/ski out, REO/default management, loss mitigation, valuations, and disposition. She has been a speaker and panelist at several conferences and has been consulted on many occasions by various organizations in the REO/financial industries for her expertise and served on many boards. She has attended numerous ongoing classes to stay abreast of changes in the ever-evolving Real Estate industry. She is the prior State Director for Colorado for VAREP(Veterans Association of Real Estate Professionals). She is a member of 3 boards of Realtors including Metro Denver, Colorado Springs and Summit County mountain areas. She heads up The Andrews Group and is or has been an active member of NAR, CAR,REOMAC, CIPS, CRS, AREAA, NAPW, NAHREP, and is an original member of the ELITEReal Estate network. She was ranked #1 for most homes sold in Denver 2007 by Denver Board of Realtors, #2 for 2008, and #2 for 2009, #5 in 2010 and #4 in 2011 and has been consistently in the top 10 ever since. Carolyn Andrews has been a top rated Endorsed Local Provider for the Dave Ramsey Organization and also a Top Producing agent for 2018 for the Homelight Company.