Make Money From Home

How Renting an Office Space Actually Raised My Take-Home Pay – The Motley Fool

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Renting a separate office space comes at a cost — but it coul…….

Image source: Getty Images

Renting a separate office space comes at a cost — but it could offer other financial benefits. 

Key points

  • While some self-employed workers work from a home office, others choose to rent out a separate office space away from home.  
  • A rented office gave this writer a tax deduction, greater productivity, and a better work-life balance.  

I’ve been a full-time freelancer for several years now. As I’ve grown over the years, I’ve changed how I operate my business to boost my income, improve my productivity, and live a better life. 

I worked from a home office for several years, but recently realized it wasn’t a forever solution for my needs. Earlier this summer, I started renting out a separate office space, and this decision turned out to be a good business move for me. 

Working from home doesn’t work for everyone 

Working from home has many advantages. You can work in your pajamas without being judged, don’t have a commute, can hang out with your furry co-workers, and can take more breaks. 

For many years, I enjoyed working from home. But I realized the main reasons I enjoyed working at home were that I didn’t have a traditional salaried job or a boss. I could still experience many of the same benefits of working for myself away from my house. 

Living and working in the same space constantly was taking its toll. I decided to look for an office rental to create a better separation between my work and personal life. 

Working from an office is a win for me 

So far, working from a separate office space has worked well for me. Here are some ways this change has benefited me financially:

A bigger tax deduction

When I worked from home, I qualified for the home office deduction. This deduction is calculated based on the space in your home that you use exclusively for work. Since my mortgage and home utility costs were affordable, my yearly home office deduction wasn’t significant. 

Now that I work from a separate office space and use that space only for work, 100% of my office rent qualifies as a business expense and is tax deductible. 

Tax deductible business expenses reduce my taxable income, saving me money on my tax bill. 

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