Heh, you reason, it's better than no office at all. Besides it takes up a small space and cost almost zero to set up.

Wrong...Wrong...Wrong!

If you operate your home office out of a room primarily used for another purpose you are making an enormous mistake.

A friend admits her first home office was a little nook in the corner of her den facing a noisy street. After constant interruptions and street noise she relocated her home office to an unused secluded spare bedroom. A very smart move on her part!

It is highly recommended by many experienced home business owners to place your home office in a separate area. Why? This will entitle you to a nice little tax benefit.

If your home office meets "Tax Qualifications" you might easily deduct everything from rent to office supplies.

Once again: You must remember to qualify for these deductions your home office must be a separate room used only to operate your home based business.

It should not be a room used for extra storage, or for the kids to gather after school or a guest bedroom.

Here's a few more deductions you might qualify for under current tax regulations.

- Your office supplies

- Supplies used to clean your office

- Equipment depreciation

- Lease payments on equipment

- Rental fees on equipment

- Equipment repairs

- Business telephone line

- Business manuals

- Business training/courses

- Home mortgage or rental deductions

Note: for up to date tax regulations visit the IRS web-site online.

And there's a few other very good reason why your home office should be a separate space. If your business involves personal contact with customers you certainly should never ever greet them in a messy bedroom/office. Think of the first impression you will make on your clients!

Makes you think...huh?

Not a very professional image!

And it's also a good idea to separate your personal and business life to boost your productivity. Thereby discouraging friends and/or family members from dropping by to chat during work hours.