Spouse is moving his office to our home. Not sure how this is going to work. I farm so I’m home too.
Help
Help
Survival Tips Needed
- Thread starter Sparkplug
- Start date
Carve out separate spaces. I have a "library" where I retreat to sit in a comfy chair and read, someplace away from Lew. When he needs to get away from me, he goes out to the garagemahal and tinkers with stuff.
It took a little getting used to...being together 24/7. We worked on forging outside friendships so that we didn't get too reclusive. Presumably spouse will still have work contacts and you will have feed & farm store contacts, so it won't be just the two of you?
If your'e outside farming then it should be like what I grew up with at home. Dad was always outside, Mom did the books / cooked / cleaned / ran kids around and did chores outside.
Otherwise good headphones and an "office" with a door if he's on the phone a lot. good internet helps too.
Otherwise good headphones and an "office" with a door if he's on the phone a lot. good internet helps too.
If there isn't space for a separate office tape will do
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Go hang out at the bar like the previous generations did. I have no interest in that and thankfully, to a point, the one benefit of living in town is I can go to the farm during the summer with a teacher as a wife.
Adding a "home office" has large tax implications and requires a big increase in record keeping and retention.
I home office and I'd say most of the tax implications are positive. Everyday expenses like internet, phones, furniture, ect suddenly become business expenses. Up until 2018 I could claim 10% of utilities, mortgage, taxes, insurance, etc as business expenses. ( The 10% was bases on office size vs total house size.)
I would encourage professional tax prep.
When you sell the property, the capital gains tax has to be calculated on the portion used as a "business asset", in your case, 10% of the structures sale price. Land value is not included in the calculation.
Good luck.
All you have to do is show what you paid total on the year for mortgage, electric, gas/water, Internet and calculate the % of each based on size of office vs. total house (as stated above, if your home office space takes up 10% of your total home sq. ft), and add them up for the deduction. Also, I had to replace my central AC unit last summer to the tune of around $3,600, and was able to deduct a % of that cost through the home office deduction.
30 x 40, two story barn he built himself. Woodworking & shop tools upstairs, storage & vehicle bays below. It's his happy space.
30 x 40, two story barn he built himself. Woodworking & shop tools upstairs, storage & vehicle bays below. It's his happy space.
Can I come to your house?
You must leave with a cat though. Everyone who leaves, takes a cat every time.
Copied from your link,...since you discussed using actual expenses, you get to "recapture depreciation".
"The method you use also affects your tax situation when you sell the home:
- If you used the actual expense method to claim home office expenses, you’ll owe taxes on all the depreciation you’ve deducted or could have deducted if you had a profit. This is called “recapture of depreciation,” and you can’t exclude it from taxes.
- If you used the safe harbor method to claim home office expenses, you don’t deduct depreciation. So when you sell, you won’t owe taxes on any depreciation.
- Things get more complicated if you’ve switched methods from year to year. In that case, you’ll have to recapture depreciation for any years when you claimed actual expenses, even if you’re using the safe harbor method at sale. Switching between the safe harbor and actual expense methods requires special calculations of depreciation, so it’s a good idea to consult a tax and accounting advisor for help."
That's cool. I'm a cat guy.
Unfortunately, wife is a dog person. With cat allergies.
Gimme a kitty!
I’m sure she has some. Heard she has an army of cats. KC doesn’t walk around the yard, she steps outside and a herd of cats carry her around.
