Home Interior Design – Connecting Little Rock

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Kitchen renovations are an essential expense for homeowners in Australia. This is because a few simple changes can alter the whole look and feel of these rooms.

For kitchen renovations the fashion is leaning towards sprucing up rooms that function perfectly but that are showing signs of age and wear and tear. The kitchen is one of the most frequently re-modeled rooms in a house. It is also one of the most used rooms, which elevates an interesting point. It may be that it always gets a remodeling job because it is one of the busiest rooms in the home and therefore looks ‘used’ fairly quickly, but how do you renovate such a busy area?

Everyone gathers in the kitchen it is true, but this part of the kitchen’s function can easily be moved elsewhere. This is not so with the other kitchen functions: i.e. food preparation, storage and meal clean-up. For a real renovation these functions will have to be moved to a temporary ‘kitchen area’. Advance planning will be requisite to set up a second ‘kitchen’ before you dismantle the first.

The fridge will probably have to be moved out of its spot in the kitchen but not be able to travel too far due to its large size! You will also need a sink, a microwave and an electric toaster oven that is outside of the kitchen.

For a sink, you could look to your laundry room or a second bathroom. Both areas can be scour out enough and remain unused for the duration of the few days when you will have no water, fridge or stove in your kitchen. Possibly the top of the washing machine can double as some counter space.

You will also need to draw up a plan of menu’s that can be easily prepared, brought in or heated up. Having to eat out should be avoided as it will involve some clean-up or clothes changing that will waste too much time.

In preparing for the Reno itself, it is always a good idea to make three lists. These will include the features that you like about your old layout, the features that don’t like and the new ones you want to include. Familiarize yourself with the latest innovations on the market.

Appliances with the new EnerGuide label will save you money on your energy bill. Consider new lighting, would you benefit from concealed-under-the-cabinet lighting? New compact fluorescent light fixtures are four times more efficient than standard bulbs. It is very inexpensive to replace only the cabinet doors on all your kitchen cabinets if you do not plan to alter the layout; check the Internet for details.

If you are changing your layout, ensure you follow the triangle set-up of stove, sink and fridge, but before you go to any of this trouble – double check that you will really be spending the money where you want it. Remember, paint, lighting and new cupboard doors are inexpensive and make a big difference!

Above are some of the great ideas for kitchen renovations in affordable price will compliment your kitchen’s beauty.

If you are working from home, you may or may not have an area of your home that you refer to as your office. It may be that you make your phone calls from the bedroom and complete your paperwork at the kitchen table and see customers or clients in the family room.

 

On the other hand you may have a separate room in your home which is furnished with a computer, printer, desk, comfortable office chair, phone, filing cabinets etc. from where you conduct all aspects of your business.

 

While from the point of view of maintaining an efficient office the latter option is probably preferable, many of us don’t have the luxury of an extra room that can be set aside for a home office and we end up working under circumstances much closer to those mentioned in paragraph one.

 

Regardless of how your “office” is set up at home, you may be able to deduct a portion of the operating expenses of your home and treat them as office expenses.

 

To qualify for these deductions you must use your home or portions thereof regularly and exclusively as your principal place of business for your home based business. Regular and exclusive use means that you can’t just point to a desk in the corner and call it your office.  It must be broken in by regular use. This does not mean you have to use it every day, but it must happen frequently enough to show that you are actively engaged in your home based business. 

 

If you think that the regular use of your office might be questioned, keep a log book (see Record Keeping article issued earlier in this series ) recording your home based business activities and business visitors for each day the office is used. You are not required to commandeer an entire room or a separate structure to meet the exclusive test.  A portion of a room is acceptable.

 

Whatever space you do set aside, however, must be used exclusively for your home-based business. You can set aside more than one area of your home for business.  For example, one room may be used as an office and another for meeting or entertaining clients. Your principal place of business is where: (1) you conduct the  most important activities for that home based business and (2) you spend the most time.

 

If you meet with clients or deliver goods or services to customers, your principal place of business could be where those meetings or deliveries take place. However, if your home based business has no fixed location, you may deduct expenses for a home office if you use your home to conduct substantial management activities and complete necessary paperwork.

 

You can have more than one principal place of business if  you have separate business activities. For instance, you may be employed and work in your employer’s place of business all day, then return home to run your own home based business on evenings and weekends.  Or you may own a business that operates in rented office space and also conduct a second home based business from your home.  Your home office expenses will be deductible, because your home is the principal place of operating your home based business.  It does not matter if your businesses are closely related or share the same clients, as long as different tasks are involved. Do not bring work home from your employer or another business that does not qualify for the home office deduction, or you could lose the deduction for your home based business activities.  You will fail the exclusive use test.

 

If your business is selling products, you may deduct expenses allocated to areas of your home regularly used for storing your inventory and product samples.  Your home must be the only location for the business of selling your products.  The exclusive use test does not apply to storage areas, but the space must be a specific, identifiable area. Suppose, for example, that you use a cupboard in your hall to store your inventory.  Even if you use the space to store linens as well, it will be deductible as part of your home office.

 

Deductible office expenses include a portion of the following expenses:

Rent,

real estate taxes,

mortgage interest,

utilities,

home insurance.

If clients or customers regularly visit your home, the costs of lawn care, landscaping, and driveway repairs may also be included.

Repairs to other parts of the house and family living expenses (such as food) are not deductible.

However, a pro rata share of repairs that benefit the entire home, such as roof repairs or painting the outside of the house, may be claimed.  The same is true for the business portion of the cost of installing and maintaining a home security system.

You may also include a deduction for depreciation on your home, but as this could well lead to a recapture tax upon the later sale of your home, you should obtain advice from your tax advisor before considering this.

 

The percentage of your home used for business is computed by dividing the square footage used for business by the total square footage of your home. Your home office deduction is figured by multiplying the total of your allowable household expenses by the percentage of the home being used for the home business. e.g. Total Square Footage of house is 1500 sq ft. Total Area used for business is 150 sq ft. making the percentage of the home being used for your home based business 10%. Thus 10% of total allowable household expenses can be used for home business deduction.

 

In most countries, the home business deduction cannot be used if your home based business already has a loss for the year. Neither can it be used to create a loss for the year. Usually however, any part of the deduction not used can be carried forward to future years. Verify with your Tax Advisor as these rules do differ widely between countries and also frequently change when tax authorities update legislation. If claiming the home business deduction you will need to record the following information:

Total Sq Footage of Home,

Sq Footage of Home Office Area(s),

Utility Costs,

Insurance,

Repairs & Maintenance,

Mortgage Interest,

Property Taxes,

Rent,

Although this sounds complex it is one of the most advantageous tax deductions available to home business owners and should not be overlooked. Should your home based business operate at a loss, you will probably be able to offset the loss against any other income that you have earned, thus reducing the amount of Income Taxes that you will be required to pay.

 

So now you should be able to see the very real advantage of operating a home based business.

Note: Taxation legislation differs between countries and each country may change their rules at any time. The information provided in these newsletters is accurate at time of publication. You should however seek specific information from your Tax Advisor or Taxation Department as it relates to your own situation each year that you are required to provide Income and Expense Statements.

 

Other topics in this series are as follows:

Number 1, Record Keeping,

Number 2, General Expenses,

Number 3, Purchase of Goods for Resale,

Number 5, Home Entertainment Costs,

Number 6, Motor Vehicle Expenses,

Number 7, Depreciation Costs,

Number 8, Business Meals,

Number 9, Salary Payments to Children,

Number 10, Travel Expenses,

Number 11, Demonstrators Samples & Promotional Tools,

Number 12, Gifts,

Number 13, Here Comes the Tax Man,

Number 14, Capital Items,

John Ritchie, A.I.B., A.I.C.B, F.I.C.B, email:brlynt@gmail.com

Copyright to this article belongs to John Ritchie. http://johnritchie.blogini.com. (Having Fun Making Money) Blog Site.

You may download and distribute this article freely and without restrictions. You must not, however, delete the resource box link.

Just out of school and considering buying your first home? You’ll be surprised how easy it can be to qualify for a loan. Too often, the newly minted workforce doesn’t realize the confidence lenders have in their ability to be responsible homeowners.

Ok, so Mom and Dad told you that you need to buy a house. You’ve graduated from college and you’re earning a decent income. Even though you don’t feel like it most of the time, you are officially all grown up. But you ask yourself, “I’m only twenty-four years old, who would possibly loan me money to buy a house?”

First time homebuyer programs are established with flexible guidelines to attract – you guessed it -first time homebuyers! You are in a great position to buy a home provided you have established some history of decent credit. Even if you don’t have traditional lines of credit to show for yourself, you may have established non-traditional credit and not even realized it. Do you have utilities, a cell phone and cable bill in your name? Have you paid them on time for 12 months? Then you have established non-traditional credit. Granted, many of you already have a credit card or gas card in your name. That’s why Dad wanted your name on it, too. Good thinking on his part. At the time, you were just excited to get the credit card “for emergencies.” It didn’t even occur to you that you were establishing a good credit history.

Most lenders want to see at least a year under your belt earning income. The majority of new job workers are making at or under the median income limit for their area. There are those that beat the curve, but then, if you’re making that much money on your first job, you don’t need a first time homebuyer program. You can probably take another route to your first home. Also, recent graduates can get credit for having a diploma. If you have a diploma and an employer who is willing to verify that you earn what you say and are likely to continue on with them, then you’re good to go -even without a year’s employment history to show for yourself.

Some lending programs ask that a borrower have maintained an excellent rental history, preferably a two year history. But, you don’t get penalized if you have been living at home. Especially, if home is in the same city that your school is located. You are simply asked to provide explanation as to how you managed to live rent free. Sometimes, Mom and Dad have to provide a written statement. They’re probably willing to do that to get you out of the house and off the payroll.

What about a down payment and closing costs? Most programs will allow a seller to chip in 3% of the sales price toward your closing costs. This allowance can cover most if not all of your closing costs. Your Realtor simply needs to be aware that you need this concession so she/he can negotiate it with your purchase contract. And how much do you have to come up with for a down payment? How about $0? Nearly all first time homebuyer programs are designed for empty pocket consumers with potential to earn more and maintain good credit. Some programs don’t require you to have any reserves in the bank. Since so many first time homebuyers live on a budget, these programs allow for the reality of life. And you can be rewarded for being a conscientious consumer with lower than average interest rates being available to you.

You may be ready to buy your first home and not even know it. A good mortgage specialist will pre-qualify you, find out what you can afford or what your comfortable paying. Then, you just have to find the right home. It’s easier than you think!

Kitchen renovations are an essential expense for homeowners in Australia. This is because a few simple changes can alter the whole look and feel of these rooms.

For kitchen renovations the fashion is leaning towards sprucing up rooms that function perfectly but that are showing signs of age and wear and tear. The kitchen is one of the most frequently re-modeled rooms in a house. It is also one of the most used rooms, which elevates an interesting point. It may be that it always gets a remodeling job because it is one of the busiest rooms in the home and therefore looks ‘used’ fairly quickly, but how do you renovate such a busy area?

Everyone gathers in the kitchen it is true, but this part of the kitchen’s function can easily be moved elsewhere. This is not so with the other kitchen functions: i.e. food preparation, storage and meal clean-up. For a real renovation these functions will have to be moved to a temporary ‘kitchen area’. Advance planning will be requisite to set up a second ‘kitchen’ before you dismantle the first.

The fridge will probably have to be moved out of its spot in the kitchen but not be able to travel too far due to its large size! You will also need a sink, a microwave and an electric toaster oven that is outside of the kitchen.

For a sink, you could look to your laundry room or a second bathroom. Both areas can be scour out enough and remain unused for the duration of the few days when you will have no water, fridge or stove in your kitchen. Possibly the top of the washing machine can double as some counter space.

You will also need to draw up a plan of menu’s that can be easily prepared, brought in or heated up. Having to eat out should be avoided as it will involve some clean-up or clothes changing that will waste too much time.

In preparing for the Reno itself, it is always a good idea to make three lists. These will include the features that you like about your old layout, the features that don’t like and the new ones you want to include. Familiarize yourself with the latest innovations on the market.

Appliances with the new EnerGuide label will save you money on your energy bill. Consider new lighting, would you benefit from concealed-under-the-cabinet lighting? New compact fluorescent light fixtures are four times more efficient than standard bulbs. It is very inexpensive to replace only the cabinet doors on all your kitchen cabinets if you do not plan to alter the layout; check the Internet for details.

If you are changing your layout, ensure you follow the triangle set-up of stove, sink and fridge, but before you go to any of this trouble – double check that you will really be spending the money where you want it. Remember, paint, lighting and new cupboard doors are inexpensive and make a big difference!

Above are some of the great ideas for kitchen renovations in affordable price will compliment your kitchen’s beauty.