Self-employment is a scary thing, mainly because you are solely responsible for maintaining financial security. Jobs will come and go, and you need to live below your means to get through the slow times. It can make buying a home scary, but becoming a homeowner is one of the best things that you can do.
It is ideal to go into the home buying process with the intention to create a dedicated office.
Gain Substantial Write Off Opportunities
Self-employed individuals are required to pay taxes on their own, and those who live off of it will need to pay quarterly taxes. However, being self-employed comes with some kinds of costs, and you can use your homeownership as an opportunity to write off a large number of expenses.
An excellent example is being able to deduct the mortgage payment percentage of your home office. For instance, a 100 square foot office in a 1,000 square foot home means you can write off 10% of your mortgage payment, homeowners insurance, and electricity bill on your taxes.
Minimize Homeowner Costs
By being able to write off a variety of expenses on your taxes, you are lowering your homeowner costs. Without running your business inside of your home, you would not be able to enjoy any tax deductions.
No Need to Rent an Office Space
Although it is tempting to rent an office space for work, doing so requires turning in an application, signing a lease, and paying rent. It is easier to get a home and an office out of a single mortgage payment.
Avoid Travel Costs and Commute Times
In addition to paying rent on an office space, you would have to commute there as well. This takes time and money, two things that you should value as a self-employed individual. The expenses come in gas, vehicle wear and tear, and higher car insurance premiums due to driving more miles.
Customize the Office to Your Exact Needs
When you rent an office space, you do not have much say in what changes you can make. However, you can change anything that you want about an office in your own home. These adjustments can help you turn a serviceable space into one that enables you to become a highly productive person.
If you have been saving up money and have accrued enough for a down payment on a home for sale, you should think about taking on homeownership to enjoy all of the benefits that you can get as a self-employed individual.
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