Home Office

Homeowners who turn a room into an office may reap tax deductions. And if they convert a bedroom into a rental unit for extra income, they may depreciate the rental property on their taxes.In both cases, though, claiming those deductions can come back to haunt them when they sell their houses.For tax purposes, the part of a home claimed as a home office or rented out is considered business property separate from the residence. Any gain or loss on the sale of that property is subject to different rules than a personal residence.

With so many new furnishings coming onto the market all the time, it can be difficult to distinguish among the good, the bad and the mediocre. Apart from the pat criterion of "I know what I like when I see it," are there reliable standards for judging the quality of a particular piece?Of course there are. And one very useful way of gauging the success or failure of a new design is by considering how well it responds to contemporary needs.Take the example of the "office-in-a-box," made by Haworth.

The sounds of excavating, hammering and sawing fill the summer air in America's neighborhoods. It's home remodeling season, and a $125 billion annual business is in full bloom.One word of advice to some of you happy homeowners out there: Remember to stop while you're ahead.Unless you have a well-crafted plan and the improvements will increase the value of your dwelling, you may simply be throwing good money away. In fact, some overzealous remodeling may decrease a home's value.For example, experts point out that putting down unusual tile flooring can sometimes kill a potential home sale.

Every day, home-based entrepreneurs are challenged with trying to present a professional image to the outside world. It's tough trying to woo a potential customer over the telephone when your 4-year-old son is screaming for a Popsicle.Despite the obstacles presented by everyday life, successful home-based business owners use a variety of techniques to maintain an aura of professionalism. They range from having the right kind of office equipment to having a separate business telephone line and set office hours.

Sound system for home office need not take a lot of spaceIf your SOHO (small office/home office) is anything like mine, it's choked with books, papers and computer hardware. Whatever happened to the paperless office and computer miniaturization? A full-blown stereo system certainly wouldn't fit in here and a boom box is just so street.Enter Onkyo's new EX-1850 mini system ($549.95). It combines a three-CD changer with an FM tuner and can serve as the backbone of a larger bookshelf system by adding an optional cassette tape or mini-disc deck.

As homeowners begin to prepare their 1991 tax returns they should take special note of new rules and forms if they have a home office, if they have an annual income of more than $100,000 or if they refinanced a mortgage last year.Those who operate a home-based business or profession, for instance, will have to disclose far more when calculating allowable office expenses on a new form tied to Schedule C.The homeowner with an adjusted gross income of more than $100,000 will face a change that limits the value of the time-honored deductions for mortgage interest and property taxes.

One of the more unusual introductions at last June's NeoCon, the international exposition for office design held in Chicago, was a "pod" that looks like a prop from a sci-fi movie.Called Computer Space One, the 4-foot-wide, 7-foot-long and 4 1/2 -foot-tall elliptical cocoon is crafted from maple solids and veneers, with an upper part of translucent plastic.Designed by Douglas Ball for New Space Inc., a division of Gilbert International Inc., it is made to be climbed into as you would a car. The idea is to close the door and shut out distractions.

Every seller hopes to get the asking price.Last year at this time that was easy. Some housing markets were so hot that sellers got even more than they had hoped for.The second half of the year was another story. Abruptly, the market turned cold, and many sellers not only weren't getting their asking prices, they weren't getting any offers at all.The market's warmer now, but far from sizzling. There are nearly three times as many homes on the market as there were last year.If sellers hope to get close to their asking prices these days, agents advise, they need to get and keep their homes in "showroom" condition.

You've decided to turn your hobby into a business. Or you've quit your job and strike out on your own. Or you're just looking for a way to spend more time at home and less at the office.If any of these descriptions fits you, you may be one of the millions of Americans setting up home offices these days.Working at home has many advantages. Besides being cheap (you're paying the mortgage or rent anyway), home is a friendly environment. There's no dress code. You don't have to play office politics.

DALLAS -- If there's a new house in your near future, chances are it will look something like the New American Home '99, a 3,858-square-foot dream dwelling in the suburbs that was one of the stars of the recent International Builder's Show in Dallas.Among other things, the state-of-the-art house has:* An exterior finish of native fieldstone and light gray brick.* A 2-story turret that houses the entry and a curving staircase.* A linear floor plan that opens the living and dining area to the kitchen and breakfast area.