Better Homes and Gardens Rand Realty
Kenneth Rabasco, Better Homes and Gardens Rand RealtyPhone: (914) 844-2885
Email: [email protected]

Working From Home? Interior Design, With Taxes in Mind

by Kenneth Rabasco 11/17/2019

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

Kenneth Rabasco

Professional Associations & Designations

Ken Rabasco aka Bosco is a member of the National Association of Realtors, the New York State Association of Realtors, Hudson Gateway Association of Realtors, and the Hudson Gateway Multiple Listing Service.

As a lifelong Westchester resident, Bosco has a vast and extensive knowledge of the intricate details that comprise the communities of Southern Westchester, be it a recommendation for the best place to have dinner in one of the many River Town restaurants, or a market forecast for what the future will hold for the next place you'll call home. With a laser-attentiveness to detail and a never-faltering determination to get the job done, Bosco is supremely dedicated to his clients, and promises the very best in service to those who work with him, whether a first-time buyer or a long-time veteran of the market. 

Real Estate Expertise

Licensed Real Estate Salesperson with Better Homes & Gardens – Rand Realty. Bosco specializes in listing and selling of co-ops, condos and houses in the Bronx and Southern Westchester covering Hartsdale, Ardsley, Scarsdale, Eastchester, Tuckahoe, White Plains, as well as the River Towns and those that are on the Long Island Sound.

As a licensed real estate salesperson for Better Homes & Gardens – Rand Realty in White Plains, I have developed a dedication to client service and satisfaction that is unsurpassed. I am up-to-date on all the real estate market trends. With a professional, yet friendly approach, I help my clients feel comfortable when buying or selling their next home. 

Member Community Involvement

Member of the Rotary Club of Hartsdale - Greenburgh 

Adjunct teacher for the My Money Workshop - This organization teaches financial literacy to young adult and those who need a helping hand to get back on their feet to lead a productive life.

Education

Pace University - Bachelor of Business Administration