Whether you are a blogger, marketer, accountant, or just falling in love with the fact that the pandemic sent you to work from home, there is a reason you are interested in knowing why you should invest in a home office.
Working from home is great as long as your kids aren’t running around your workspace, just like being self-employed is great as long as you can accumulate enough tax right offs to keep you from owing money at the end of the year.
Maybe you don’t have kids, but you get easily distracted from your work obligations when the TV is sitting right there or you are working at the kitchen counter just a few steps away from pantry-boredom.
How are you going to get your work done without a designated, quiet, secluded space? Creating an at-home-office. Not only is this going to give you your desired working space, but you are also going to save money, and possibly receive money from the government rather than paying it in taxes. But what do you do if your house is small, you live in an apartment and can’t develop an office, or you have an office at home but it’s not respected as such? Invest. Invest. Invest.
Investing in an office might sound like debt to the nomadic person, and if you aren’t stationed then it probably wouldn’t make sense to invest, unless you have takers for renting it out!
Let’s rewind to redefine what is an investment, as it can often appear as debt when combined with loans and credit. Investing money into something is done in order to make a profit off of it later. Think about your job, you invest tons of time and energy each day into it, and for what? Because you will get paid in the end. It’s the same with investing money. So while it might look like you are “wasting” time and energy at a job that might be repetitive, tedious, or just out-right suck, you do it anyway because the return makes it worth it! Same with investing financially.
There are a couple of ways to look at investing in the discussion of an office.
Buying a Home (with an Office)
Did you know that your office space, meaning the area in which you work, can actually be reduced from your rent or mortgage as a deductible come tax time? Depending on which country you live in, the amount varies, and there are some limitations on how big your office space can be.
If you have never bought a home before, you will have to take out a loan, which gets the same deduction with respect to rent, so keep your bill receipts. When you are buying your home, you will want to use a home loan calculator to determine what it will cost in comparison to what you can afford on a monthly basis.
What are you have settled on a price you can afford, it’s time to go house hunting! Choosing a house always contains a list of criteria, and one of your priorities should be office space. Pick a home with ample amounts of room, depending on your occupation. Drafters and artists will likely need more room than a marketing strategist or a blogger, so consider the type of work you will be doing in this room.
Adding onto Your House
Some people have already invested in a home, finding the house of their dreams before the pandemic hit or they switched to remote work. Little did they know, they would need a home office space. Sound like you? Don’t worry! If the house is yours, you can do what you want to it, including extending it sideways or vertically to include an office.
If you have an attic or storage space, an extra bedroom, or a shed that is clean, has plenty of sunlight, and isn’t being utilized, you can always just revamp it into an office space. Again, consider how much space you need before making any commitments to too small of a space.
Whatever you choose to do, keep all your receipts from companies you hire, devices you buy, building material you buy, and even furniture, as all of this can be written off your taxes. If you will be paying someone, possibly even taking out a loan for the company you hire, you are going to have a nice tax return the following year. Not to mention, you will have an awesome new office space that (hopefully) provides privacy, a good internet connection (think again before you redo the basement), silence, and a clear focus on your work.
Renting an Office
Okay, so you can’t add to your house because your wife said it will look ridiculous on the exterior. Or maybe you just don’t receive the quiet and respect you ask for when you are in your current at-home office. Kids, pets, wives, can all be a distraction, as well as chores, food, and other things with easy access at home.
Don’t let the word “rent” fool you. Renting an office space that provides the privacy and focuses you have been desiring is still considered an “investment” if it will bring you a larger return later. Your office away from home that is helping you to focus and be more efficient with your work is likely to bring a higher income unless you work on hourly wage or salary. If it doesn’t make you more money, it will save you money come tax time.
Find an office space with confidence–one that suits your working needs and desires, and is far enough away from the distractions of home but within range of comfort. You don’t want to feel like you are commuting every day!
Space is not the only investment
As briefly mentioned above, your office space is not the only thing you can deduct. Any repairs, equipment, furniture, etc. are included in the space. Nomads don’t always get this privilege if they are working at coffee shops or co-working spaces. Nomads have to travel light, so they also might not purchase a desktop, keyboard, or other office utensils. Keep your receipts and bills to let the government know that you are investing in this business so you want to keep your money!