Can I run a Real Estate office out of my home in Indiana? (sales)

[Caddie1187]

I am currently looking to cut down on costly office expenses and I know I can run my office from my home. Is it legal in Indiana? The laws are very vague. Our clients rarely come to our office; we are currently in an office park with virtually no visibility. I think a home office would be the smartest move for us. We can always use our bank for a conferance room if we had to.

[jodyrose]

Originally Posted by Caddie1187

I think a home office would be the smartest move for us. We can always use our bank for a conferance room if we had to.

I think you really need to have your brokers license before you can "hang" your shingle out so to speak at home exclusively. All sales agents in Indiana must have their licenses "supervised" or over seen by a broker, but if you really want to know, go to the Indiana Real Estate Commission website and find out there.

[cleoT]

I'll second what what Jodyrose said. Best of luck, and let us know when you find out.

[rrtechno]

Be sure to check also to see if there are any restrictions (deed, HOA, zoning, etc.) that would prevent you from running a business from your home.

[JulieL]

Caddie1187,
Also, you will want to be sure that you do not throw up any red flags when you do your taxes. Because you will have to depreciate some of your home's value based on square feet that you use for business. First of all, I would consult a tax advisor.

Good Luck,
JulieL

[rrah]

^^^Julie, She does not HAVE to depreciate her home's value on her taxes. Not taking a deduction one is entitled to is a personal choice that is permitted. My spouse has run a business from our home for nearly 20 years in two different states. Although he has a separate room he uses as an office so it would be fairly straight forward to figure out the home depreciation, we've never claimed it. We made that decision years ago, based upon the advice of our accountant, when the IRS used home based business depreciation as one of things that they looked for in determining audits. Supposedly that is no longer one of the criteria.

As someone hinted at, you need to contact your city/town/county to determine if you can have clients coming to your home.

[Candy T]

I have been working from home and filling out and paying taxes for nearly seven years. A few years ago we had an insurance agent who ran his business out of his home. His living room was his office, complete with desk, files, etc. You would never know that it wasn't just an office and clients came there. I think finding out if there are zoning laws that would restrict that as mentioned would be the thing to do.

[JulieL]

I was just told by my accountant not to deduct the use of my home on taxes. She said it would throw up red flags for an audit.

[Candy T]

Originally Posted by JulieL

I was just told by my accountant not to deduct the use of my home on taxes. She said it would throw up red flags for an audit.

It could but I have never been audited.