Shortly after I posted my e-mail about my embarrassing mistake in using “your” instead of “you’re” in one of my e-mail subject lines, I received 3 e-mails from colleagues – each with a typo.

I promptly responded to each one of them, told them what happened to me and pointed out their error.

They thanked me and while we might have each been a bit embarrassed by our mistake, we agreed that it wasn’t the worst thing in the world. We proofread our work and strive to be professional. However, sometimes we make mistakes and they’re simply honest errors. We’re all just human, aren’t we?

Here are the three typos I came across in my colleagues’ messages:

#1. “I can give you my complementary time..” Oops, should have been, “I can give you my complimentary time….”

#2. “I want to her from you!” Oops, I think he meant “I want to hear from you!”

#3. Personally, this one was probably the most embarrassing. It read, “If you listened to my teleclass on getting unsuck (if you haven’t – why not?” Ouch! Do you think she meant “unstuck?”

So, how about you? What typo have you made that slipped past your watchful eyes before you hit the “send” key? Did it result in a chuckle, an embarrassing moment or both? Please share your (not “you’re”) comments below. I’d love to hear from you. Thanks!

Thank you to guest blogger Dr. Jerrold J. Stern

Who wants to think about taxes after they’ve just filed their tax return? While it may not be at the top of your list, if you work from home, you may be able to save taxes for 2012 and beyond if you start planning now.

When you work mainly at home (whether your rent or own), your tax-deductible workplace can be an entire room, just part of a room, or even a closet. But … big surprise … there’s a hitch. That space must be used only for your work. Working in your den or on your kitchen table won’t lead to a deduction. Likewise, technically, if you spend any personal time in your workplace, there’s no deduction – that means no pleasure reading, no surfing the web for non-business reasons, no paying bills, etc.

However, if you qualify – and here’s the good part – lots of typical homeowner/renter costs can be used to lower your tax bill. In addition, business mileage at 55.5 cents per mile, furniture and fixtures in your office area, and even part of the cost of your home (or rent) can be deducted. For example: The figures below are for Barbara – a consultant whose home office area equals about 10 percent of the square footage of her house.

Consulting income in 2012 = $ 20,000

Category 1 expenses – for homeowners only – (deduct first)
10% of 2012 real estate taxes and mortgage interest = $700

Category 2 expenses – for homeowners and renters – (deduct second)
2012 costs for items such as:
Supplies, business mileage, ½ of business meals, painting, separate business phone,
computer for business use only, furniture and fixtures = $4,000

10% of 2012 household expenses, such as:
Utilities, trash removal, general home repairs (like roof repairs), homeowner/renter insurance,
house cleaning services, security system, rent = $600

Category 3 expense – for homeowners only – (deduct third)
10% of home “tax depreciation” (explained below): = $513

Total home office deduction ($700+$4000+$600+$513) = $5,813

Taxable income from consulting = $14,187

“Tax depreciation” applies to homeowners but not renters. In the example, it refers to writing off the cost of the portion of Barbara’s home that is associated with her home office space. Assume her home is 2,000 square feet and the size of her work space is 200 square feet (including closets). Thus, 10 percent of her home (200/2,000) is considered to be deductible work space. Further assume Barbara paid $200,000 for her home (excluding the land cost). Gross depreciation is $5,128 ($200,000/39 years). The deductible portion is 10 percent of $5,128, or $513.

For Barbara, her 2012 tax savings could amount to $2,441 ($5,813 deduction x 42% estimated tax rate). The 42 percent rate includes Federal, state, and self-employment tax rates.

Remember, this is only an example. It’s important you keep in mind that deductions are only allowed up to the amount of work-at-home income you earn during the year.

When you’re working at home, record-keeping is key. While it’s not always convenient to hold onto them, you must save receipts and cancelled checks to support your deductions. For mileage and meal costs, keep a log book to track the number of miles driven for each trip, the date, and the topic(s) discussed during each client meeting. Mileage deductions are only allowed if you have a deductible home office space.

So, what’s your next step to make sure you save on your taxes this year? Here are 3 suggestions:

1. Talk to your accountant or tax advisor.
2. Use TurboTax or a similar program when you file your taxes.
3. If you’re interested in all the gory details, check out IRS Publication 587 Business Use of Your Home.

Have a question about your work-at-home deductions? Post them in the comments section below. I’d love to hear from you. Here’s to saving on your taxes in 2012 and many happy returns.

About Jerrold J. Stern, MBA, PhD: Dr. Jerrold Stern is a Professor of Accounting at Indiana University’s Kelley School of Business. He has been publishing tax articles and tax textbooks for over 30 years. While Jerry’s been writing for some time, this is his first blog post online. He offers tax tips, advice, planning, and more. Feel free to review his credentials here.

I sent out an e-mail message last week. Perhaps, you received it.

Did you notice anything wrong in the subject line?

It read: “Are you ready to charge what your worth this year?”

Notice the error yet? Well, obviously, I didn’t catch it before I pushed the “send” key. Off it went into cyberspace – typo and all.

Imagine my embarrassment when I received an opt-out request and the reason provided was “Use of ‘your’ when it should have been ‘you’re’ in an e-mail subject line.”

She was right. I had missed a classic error often made by others and my face turned red when I read her message. However, I’m grateful because it also prompted this blog about contractions and how they’re commonly misused.

Here are three to keep in mind next time you’re writing your next blog, e-mail, or any other form of written communication:

1. YOUR vs. YOU’RE:
“Your” means “of or relating to you or yourself.” For instance, “What is your time worth?”

“You’re” is plain and simple – it means “you are.” In other words, “Are you ready to charge what you’re worth this year?”

2. ITS vs. IT’S:

“Its” is used to indicate possession or the recipient of an action such as “The dog was wagging its tail.”

”It’s” means “it is” or “it has.” So, “It’s time to take the dog for a walk.”

3. THERE, THEIR, and THEY’RE:

“There” means “in or at that place,” “to, into or toward that place,” or “that place or point,” For instance, “Let’s sit over there,” “I flew over there on an airplane,” or “When they saw the flames, they got out of there fast.”

“Their” is used to indicate possession. “They were upset to learn that the airline lost their luggage.”

“They’re” means “they are.” So, “They’re going to leave for the airport shortly to catch their plane.”

Did you ever send out a message only to discover a typo after you sent it out? Were you embarrassed?

Please share your thoughts in the comment box below. I’d love to hear from you.

Source: Webster’s II New Riverside Dictionary, Berkley Books, New York.

Why is there a photo of my golden retriever in a post about Facebook?

Well, once again Ike serves as my inspiration. Sad to say, on April 14th, Ike passed on into the spirit world. As many of you know, who have read about Ike here, he was a treasured gift in my life.

So what does he have to do with Facebook? No, Ike did not have his own Facebook page, but when I posted a status update about Ike’s passing I was overwhelmed by the outpouring of loved I received. After reading so many touching messages that filled my heart with love, I was grateful for Facebook.

I thought of the many people I’ve come across who fear Facebook. Who say they don’t want anything to do with it because of their concerns about privacy. And, I must say, there are times I’m not so sure those Private Messages on FB are quite private so I still resort to other forms of communication when I have something I don’t want others to read on this (or any other) social network.

However, I now say “fear not Facebook,” because those messages I received came at a time of deep grief and though I shed many tears I also found so much comfort and felt so much love from people around the country. Some know me & knew Ike personally. . . some know me and never had the pleasure of meeting Ike . . . some only know me online, but have never met either Ike or me in person. Yet, the one thing in common among each message was the sincere compassion and heartfelt thoughts everyone sent my way.

You don’t have to wait to lose a loved one to discover the positive power of Facebook. I also find it uplifting at birthdays when friends and colleagues send their wishes for a joyful birthday celebration. If you’ve feared the social network, give it a second thought. You may still decide against it or you may discover the beauty of networking with others near and far (and how good it can make you feel).

A big thank you to all of you who showered me with love these last few days. Your messages are still coming in and again, I am SO grateful for each and every one I receive!

Whether it’s about a beloved pet or person, do you have a beautiful Facebook story you’d like share? Please post it in the comments section below. I’d love to hear from you.