Is your home a potential gold mine?
By Lisa
Iannucci • Bankrate.com
There are many ways to make money and save money,
but using your own home to earn extra cash is often overlooked.
Savvy homeowners can cash in on ideas that range from the more common
(taking in a roommate or holding a garage sale) to the creative:
renting out your home for film and advertising use.
It might take a little work to pursue some of these
opportunities, but so does an extra job. Some are rather painless
and could be fun. They may provide fast cash one time or a steady
income.
When Josh Rose read that the July Democratic National
Convention is estimated to bring millions of dollars this summer
to his hometown of Boston, Mass., he wanted his share of some fast,
easy cash. Knowing hotels were booked, he placed an Internet ad
to rent out his two-bedroom, two-bath bi-level condo. If he gets
a taker, he'll pocket $6,000 tax-free for a 14-day rental -- more
than enough bucks to cover the cost of his upcoming honeymoon.
Before you consider following Rose's example of putting
your home to work, sit down and think about what that really means.
Consider the impact on your lifestyle. Some options, such as bringing
in roommates, mean giving up your privacy, while a garage sale is
less invasive. Calculate how much extra money you want to make and
research how much income you're likely to earn. Some ideas require
an initial financial investment, such as converting your home to
a bed and breakfast, and may also entail going before the local
planning board to get a home-based business approved.
Remember, too, that there may also be both tax implications
and tax breaks on your earnings.
Hurray for Hollywood!
Want the excitement of seeing your home in a movie, TV show or print
ad? Lisa Palmer's home in Middletown, R.I., has appeared in Reebok
and Chrysler print advertisements. "A photographer came to
my home once and liked the light, so he remembered my house when
he got this assignment," says Palmer, a writer who made $500
for a four-hour shoot on one ad and $700 for the other. "At
the time, my children were young and I was writing part time. I
used the easy extra chunk of money to pay bills."
Another freelance writer, Sally Stich, earned $350
from Home & Garden TV for a day's work when they used her Denver,
Colo., home to film an episode of "That 60s House." Her
house was cleaned and they moved furniture and artwork, but the
crew returned the home to her in perfect condition," says Stich.
Any drawback? "It was emotionally draining. I
couldn't let my phone ring and I was trying to work on a story."
Stich was flattered by the opportunity and says she'd
do it again if the money was right and if she got the same clean-up
guarantee.
To find these opportunities, check your state's film
commission and tourism bureau. Let them know that if opportunities
arise, you'd be interested.
"If you rent out your home for 14 days or less
for the whole year, you do not have to declare any of the income,
but you also can't deduct the expenses," says Joseph Anthony,
a tax expert in Portland, Ore. "It's called the 'masters deduction'
because it's used a lot by people who live on golf courses. It's
tax-free income. There are very few allowed, but this is one."
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