“There comes a time when you realize that the little on-the-side business you’ve been running has become your main source of income. And that you just can’t keep doing business from the kitchen table!” Angela R. recently lost her job in the banking world. “As a result, I poured all of my energy into our small press, and it really took off. Now I need space to get the business out of the main part of the house!”
Wellesley: Home Office or Rent a Separate Space?
Is it a better decision to finance a home addition or rent a separate free standing space for your home business? There are many criteria to take into consideration. The first thing to take into account is the type of work you’ll be doing.
“I’m in publishing, so mostly what I needed was office space and great computer connectivity,” Angela said. “But we also needed a space to store books, sales materials and cardboard boxes.” Angela had her Wellesley building contractor install an overhead door to make receiving large shipments of books easier. “I’ll tell you what, I don’t miss trying to maneuver a heavy handcart down the hallway anymore!”
There are significant tax advantages to having a home office built. However, to qualify, your home addition must meet specific criteria. You’ll want to talk to your financial planner or tax adviser for guidance. The most common rules require that the home office space must have a separate entrance and be used exclusively for your home business in order to qualify for tax breaks.
“Having a dedicated home office space has made me more productive and efficient. It’s also really good to be able to shut the door and put work away for a while. I couldn’t do that when I was working out of my kitchen!”