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Old 09-13-2012, 09:14 AM   #21
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And as to the above, yes I can write them off, but the IRS rules are very stingy these days...to write off a home office it must be used EXCLUSIVELY for business.
True. Apportioning square footage, RE taxes, utilities, etc. When I ran my business out of a home office, my accountant told me not to even bother, as documentation would have been a headache (for me and him). I did have a separate phone line and PO box, but I used the computer for personal use, so didn't bother with that either. It was still better than renting office space, and there was other equipment belonging solely to the business. Mileage was easy as long as I remembered to reset the trip odometer, and many trips were routine.
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Old 09-13-2012, 02:28 PM   #22
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Have you been checked for low testosterone?
No
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Old 09-13-2012, 02:31 PM   #23
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You can use part of a room for an exclusive home office.

Home Office Deduction

"So, if you use a whole room or part of a room for conducting your business, you need to figure out the percentage of your home devoted to your business activities."
I suppose...but the % gets pretty small...I'll have to see if that's even worth it. 120 sq. ft. out of a 2,800 sq.ft. home, when I have no mortgage...hmmm...depreciation? maintenance/upkeep...probably not a lot of money. We'll see. Thanks
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Old 09-13-2012, 02:34 PM   #24
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True. Apportioning square footage, RE taxes, utilities, etc. When I ran my business out of a home office, my accountant told me not to even bother, as documentation would have been a headache (for me and him). I did have a separate phone line and PO box, but I used the computer for personal use, so didn't bother with that either. It was still better than renting office space, and there was other equipment belonging solely to the business. Mileage was easy as long as I remembered to reset the trip odometer, and many trips were routine.
True, that's what I'm thinking too (see my post below). I am charging off my "distinctive ring", PO box I keep, office supplies, mileage, and then the two biggest expenses are tools (at least for this first year), and education/certification.

I guarantee I'll lose money this year...as my revenue will be tiny and my expenses are large...but future years will be different. This will be new for me, as it's "active" income..so I'm not sure if I'll get a W-2 from the guy I'm subcontracting for...but I know I'll have to send in FICA/SS taxes.
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Old 09-13-2012, 07:03 PM   #25
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2) Get a lower-paying, fewer hours, less stressful career soon, and then work about 5-6 years from that point.

Our nest egg is of the size that it matters less how much you add to it, and more how long you leave it there and the rate you earn on it. For the last two years, our account has earned more than my net pay!
Congrats! I would also choose #2, and I'm currently brainstorming different job ideas that I could do that with. If I could manage to get laid off, severance and unemployment would cover quite a bit for me.

Our nest egg is getting close to that stage as well. I'm less concerned about adding to it, and more concerned about just leaving it alone to grow.

I'd probably call it FI.
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Old 09-14-2012, 01:43 PM   #26
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Thanks everyone for the replies. I'll update this thread every so often, with the hopes that by early next year I'll be a full-time home inspector.....with much less stress, at a much lower wage, where I can have some fun at work, and not have all the MegaCorp bureacracy, and ...blah blah blah

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Old 09-14-2012, 01:58 PM   #27
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Good luck to you and congrats on your FI!
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Old 09-14-2012, 05:16 PM   #28
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You have a well thought out plan, however 5.1 assumes he will work your butt off at 40 percent of what you are making now for 18 months. Is it not better to work 24 month for much more and call it a day?
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Old 09-15-2012, 06:12 AM   #29
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...I'd have to move a small TV and beer fridge out of the room to qualify.
I can visualize a kegerator in an adjoining room with a tap on the office wall in your future.

Cheers!
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Old 10-31-2012, 03:11 PM   #30
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Ok, we have not done it yet...but getting very close (within months).

Wife and I both have high-paying MegaCorp jobs and are getting burned out. I'm 50, she's 54.......

I've decided to become a home inspector.
Update: Things are getting closer...but I have to hang in there about 2-3 more weeks while some unusual things get sorted out. I think by Thanksgiving I can give a more complete account of things...very exciting!
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Old 10-31-2012, 04:51 PM   #31
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This will be new for me, as it's "active" income..so I'm not sure if I'll get a W-2 from the guy I'm subcontracting for...but I know I'll have to send in FICA/SS taxes.
Likely a 1099, no?

One question- for a guy with a high net worth might this not introduce some unwelcome lawsuit exposure?

Ha
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Old 10-31-2012, 05:20 PM   #32
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Likely a 1099, no?

One question- for a guy with a high net worth might this not introduce some unwelcome lawsuit exposure?

Ha
+1 Was hoping you've covered yourself as I read through this. I definitely think the path you've chosen will lead to the most happiness. Dreading going to w*rk every day and not doing the things you enjoy is no way to live life if you don't have to. Speaking of happiness; forget FI, FIRE'd, semi-retired, etc... the most important thing is that you can call yourself happy. Enjoy!
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Old 10-31-2012, 07:27 PM   #33
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I don't know whether you will be called "FIRE'd", but you surely will be called a home inspector.
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Old 11-01-2012, 02:21 PM   #34
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Likely a 1099, no?

One question- for a guy with a high net worth might this not introduce some unwelcome lawsuit exposure?

Ha
I THINK 1099, yes...we'll find out.

As for lawsuits...
1) I opened an LLC, so that should help limit liability
2) Have an umbrella policy
3) Required by law in my state to have E&O insurance of $100k...I bought $500k
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Old 11-01-2012, 02:23 PM   #35
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+1 Was hoping you've covered yourself as I read through this. I definitely think the path you've chosen will lead to the most happiness. Dreading going to w*rk every day and not doing the things you enjoy is no way to live life if you don't have to. Speaking of happiness; forget FI, FIRE'd, semi-retired, etc... the most important thing is that you can call yourself happy. Enjoy!
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I don't know whether you will be called "FIRE'd", but you surely will be called a home inspector.
Thank you!

More details in a few weeks. For now I'm basically working 2 FT *obs.

It will be worth it....it will be worth it...it will be worth it.....uummmmmmmm (chanting)
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Old 11-01-2012, 02:37 PM   #36
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For now I'm basically working 2 FT *obs.
Are you often an over-achiever?

omni
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Old 11-02-2012, 09:17 AM   #37
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Are you often an over-achiever?

omni
Yes, and looking to underachieve very soon.
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Old 11-03-2012, 02:59 AM   #38
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+1
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Its not important what the Forum thinks, but what makes you feel content and happy. I applaud you for thinking this out and moving in a direction that gets you away from the corp finance chains.
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Old 11-03-2012, 10:05 AM   #39
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I THINK 1099, yes...we'll find out.

As for lawsuits...
1) I opened an LLC, so that should help limit liability
2) Have an umbrella policy
3) Required by law in my state to have E&O insurance of $100k...I bought $500k
you took the words out of my mouth...with your assets you have a target on your back....
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Old 11-04-2012, 09:14 AM   #40
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I like this thread and wish you the best of luck with the transition. I actually have a list of alternative jobs which I would consider looking into after FI, and I just added Home Inspector to it! You and I are similar, I have many hobbies, very much into cars and motorcycles and the rebuilding of same, I have rentals, and I have an engineering degree. The home inspector idea seems great, as it fits in with stuff I love to do, I can make my own schedule, and I actually love looking at houses. That being said, the liability issue is a little scary, I'd have to look deeper into how to protect myself in my state.

Please keep us informed how it goes!

-Pan-
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