Work at Home or Get an Office

Should I work at home or get an office outside my home?  This is a question people who prefer not to work at regular jobs often ask.  I don’t have an ironclad answer but:

Check with your tax preparer.  I believe the IRS requires you to use your “home office” strictly for work otherwise you can’t make any deductions.  I don’t think you can even eat there, watch TV or play computer games.

If your office does qualify, I believe you can deduct the portion of your home expenses relating to your office space.  That involves math which is beyond me, but basically, that means that you may be able to deduct expenses for the percentage of utilities and other expenses accounted for by your office space. 

You also can usually deduct the cost of a phone line or other expense directly related to your business.  Again, check with your tax preparer.  You don’t want to make any mistakes.

It's possible that your rent for the office of will be a legitimate business expense. Will there be other office equipment available -- fax machines or the like -- anything you don't have available in your home?

Having other adults to talk with may also be an advantage and as one of the other answers put it, there's also the possibility that you might get some business you wouldn't have otherwise. I work out of my home but take my laptop, pc card and camera with me so I do get some business expenses out of the deal.

I can, and actually have, sent photos to news media from my car.  I didn’t get paid for it, though.  It was an accident and they didn't use it because it wasn't serious and no deaths were involved.”

Your decision requires a lot of thought and getting information from knowledgeable people, including the IRS and the Small Business Administration.  Your city might also have programs relating to being an entrepreneur. I lived in one and one of the “perks” was that they helped with licensing, if needed, and would even make you a deal on office space. 

You might also check with the Senior Citizens Organization of Retired Executives (SCORE) for some additional ideas.  You can access them on the Internet and get a mentor who may be many miles away from you.

SCORE  members have literally “been there” and “done that.”  There’s very little in the way of business that some one of them hasn’t done. 

Good luck.