Is your home a potential gold mine? -- Page 2
By Lisa
Iannucci • Bankrate.com
Garage Sales
Spring often means garage sales and when Patricia Quaglieri of Yonkers,
N.Y., wants some extra cash, she sells items in her home that she
no longer needs.
"Being successful doesn't take much time, but
you have to put some effort into it," she advises. "Nobody
wants to search bags of junk. If you are really serious about making
money, you'll make the event presentable."
Income can range from under a hundred dollars to a
thousand dollars or more, depending on your wares.
"Some municipalities want you to have a license;
check any local regulations," says Anthony. "For the most
part, you won't pay tax on what you sell. If you are selling used
personal goods and receiving less than what you paid for it, it's
not a taxable event. However, if you receive more than what you
paid for it, then you have a tax event."
Home-based profits
Do you grow your own tomatoes or other produce? Can you sell your
artwork or crafts? Do you want to baby sit? Creating an at-home
business can bring in extra cash and help you meet your goals. Costs
for starting an at-home business might include making repairs, procuring
licenses, purchasing additional insurance and others. But starting
up a home business could create problems with your neighbors.
"There are special tax breaks and rules for daycare,
but in general if you're running a business from your home, you
may be eligible to take a home-office deduction for the portion
of your home that is used regularly and exclusively for your business,"
says Anthony.
B&B for bucks
Own a large home or have an extra room? Turn it into a bed and breakfast.
Cindy LaBuff and her husband did so she could leave her job and
stay home with their son. Cindy invested $2,000 in the conversion
and in the second year, she was earning equal to her former salary
plus tax benefits.
"You do feel like you're 'on' 24 hours, 7 days
a week, even if you don't have guests, because you're always maintaining
and keeping things as if you're expecting guests. But I enjoyed
the presence of people in my home that I felt comfortable with,"
says LaBuff.
A B&B's tax breaks are the same as renting out
a room: Report the income and take a proportionate share of expenses
relating to the border(s), says Anthony.
If you don't want a B&B but still want a steady
income, consider getting a roommate. If your lot is large encough,
you can also sell off extra land or split it with a home builder.
Check the fine print
Read the fine print in your home-related paperwork for extra savings.
For example, is your property tax bill out of line with that of
your neighbors or do you think there is a mistake? Challenge your
property tax bill by bringing it up with the assessor. Check your
insurance bills for unnecessary charges. Can you raise the deductible?
If so you will save on the premiums. A few minutes of review can
save you hundreds of dollars.
The key to finding money in your home is to settle
on an idea that's right for you. So, before you think about getting
a part-time job for some extra bucks, think about squeezing your
home for cash.
Lisa Iannucci is a freelance
writer based in Oregon.
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