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charlieharry1 · 4 years

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The entrepreneurial mindset – transcript from my tedx bundaberg communicate

So, the phrase entrepreneur, permit’s begin there. Has everybody ever seemed this up in the dictionary? I’d never heard the word entrepreneur whilst i used to be at faculty. By no means did every person Digital Marketing Companies Stafford say “you! The lady that talks in magnificence and receives kicked out a whole lot”

“you! The lady that gets suspended”

“you! The girl this is smart – but doesn’t appear to be engaged in a whole lot of this content”. That became me. Nobody ever said “you realize what? Maybe you ought to think about being an entrepreneur.”

and this is pretty surprising to me because in case you haven’t already picked it up, i’m from wellington, new zealand and that i went to a definitely modern faculty – it became called wellington high college which is now over 100 and thirty years antique. We referred to as instructors by their first names, it became co-ed; boys and women, we didn’t wear a uniform. In the senior years it was go in case you need and don’t pass in case you don’t want – which didn’t in shape every body. We may want to study subjects like journalism and horticulture which turned into first-rate, but nevertheless, the handiest pathway they ever supplied to us in 1994, which become the 12 months i finished high school, become that you cross right through to 12 months 12, which you then move and get a tertiary education and you then get a process. That’s all i ever knew. Both my parent didn’t run companies, one changed into a teacher at my college, so you can imagine how mortified he became at my behaviour at times. Nobody ever supplied this idea of being an entrepreneur. When i have heard the phrase entrepreneur over the years, occasionally it’s were given bad connotations, hasn’t it? Take a look at these words on the slide at the back of me. I suggest who desires to be a wealthy person? A rich person? A dealer? What approximately a wealthy person, or a massive shot, or a large wig? Or even a whizz-kid. So using the phrase “entrepreneur” certainly dates again to the 1800s and it’s a french phrase. And over the years it has grown in popularity. I feel like in latest years if anything, the phrase entrepreneur has taken on a lifestyles of its own and is perhaps even over used – wouldn’t you agree? These days, i’m pretty certain while you’re growing up in new zealand, australia or someplace else within the international that pretty probable, and that i genuinely desire this is real, you're advised approximately the possibility to move on a path of constructing your personal business – if that’s what you want to do. And i implore all of you too, that even when you have taken the traditional direction of studying and going and getting a activity. That at any time you could choose to do a “side hustle” or even mission out and start a new commercial enterprise. Did you already know that the colonel from kentucky, that made the well-known kentucky fried chook or kfc, didn’t begin his commercial enterprise till he was in his 70s?! So in case you want to be an entrepreneur or you simply need to have an entrepreneurial attitude that’s a bit more like an entrepreneurial individual – what does that imply? To me it way numerous different things. It approach to assume in a different way and all those instances i used to be at excessive school getting into hassle, struggling with the academic paintings, it’s due to the fact i notion in a different way, and i just didn’t in shape the mould. So in case you’re taking into consideration a person right now that seems like that, whether it’s your very own baby or a nephew or a niece or someone you’ve taught, perhaps, just perhaps, they’re an entrepreneur too. To inform you how i got here to workout i used to be an entrepreneur (and how it wasn’t such a terrible element and has in fact brought me a lot of awesome opportunities on this life) permit me inform you a piece about my journey. As i said, i started lifestyles in wellington new zealand wherein i was born and bred until the age of 21. I created my first commercial enterprise when i used to be 17 years antique after i decided to begin a newspaper whilst at school. As i said, some of the subjects at faculty weren’t for me – i’d never contact computer systems till i needed to do a journalism direction and had to discover ways to type out my story. Then my dad said “you need to begin a newspaper and also you have to do it on game,” and i thought “that sounds high-quality to me because i really like sport!”

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In fact at that point i used to be inside the new zealand crew for water polo for my age group and i skilled loads. I also did a whole lot of swimming and a whole lot of surf life-saving and i gained a variety of medals. I was a water toddler i bet you can say. And the issue that were given me genuinely inquisitive about beginning the newspaper – all of us need to be encouraged by means of some thing – and for me, at age of 17, it became money. I wanted money to pay for my game, which became unfunded. My parents didn’t have the money to keep installing to pay for the uniforms or the journeys and all of the costs associated with recreation. So, i started that newspaper. And in those days, for the ones of us old sufficient to remember, it was bromide, no longer virtual at all. And i had quite a few pleasure losing off in my little crimson mini to every excessive school in wellington, a package of newspapers. And because it become made by means of youngsters, for kids, they devoured it! Then i get this enterprise name from an american man who stated ‘you’ve stolen my concept!’ he was splendid annoyed at me so i stated “how ought to i have stolen your idea? I’ve in no way met you, i don’t know who you're or what your idea even is!”

Properly it seems that this guy have been planning to begin a secondary school sports newspaper plenty like mine for approximately two years. And here became me, coming alongside in any respect of 17 years antique and that i just began this issue, and i idea things like $2 hundred complete web page ads changed into excellent for putting in the bank to pay for my sport. So he demanded a meeting with me and right here i'm, my first boardroom meeting as a 17 years old, with my dad there for assist, reducing my first business deal. And also you’re probably thinking what that frypan reference is up on the display screen? I’ll inform you currently. Years later, a guy in silicon valley said to me, “ you recognize businesses are a lot like pancakes – you stuff the primary one up,” and that i stated, “ oh my god, that’s so actual for me!” due to the fact that newspaper was the primary commercial enterprise and without know it i reduce that deal and it ended up being a clearly horrific enterprise deal when i appearance back. It became a salary, a small lump sum and that i had to continue to paintings for him for the rest of the 12 months. Which for me, become excellent on the time, because i simply wanted to educate and get the cash to go and play against australia later that yr. Properly i did what i used to be asked, and i learnt my first very good commercial enterprise lesson. Which is, if making a decision to enter commercial enterprise with a person, or some thing it's far you decide to do as an entrepreneur, make certain it aligns together with your values. On this experience, his values and my values did not align. And it didn’t exercise session. On the quit of the yr we parted ways and that turned into the end of my first enterprise. For the next seven years, from age 21 to twenty-eight i travelled the world and that i supplemented my travels with journey writing, so i guess you may say i was a journey blogger earlier than it became even a thing. In order that’s my second tip on becoming an entrepreneur or developing an entrepreneurial mind-set, you want to create your very own opportunities. People aren’t necessarily going to mention “hello, you ought to try this” now and again you’ve just got to think “i want to do that. How am i able to make it appear?” then make it manifest! Fast forwarding in my story, i fell pregnant at the tablet, in london, and that i had to work out what to do subsequent. With the aid of this degree, i used to be the editor of a newspaper at age 26. So, i was doing pretty well with the career aspect. However to fall pregnant at the tablet unexpectedly in london, truely made me re-suppose existence and what i was going to subsequent. We in the end had the child, and for some time there we caught it out in london seeking to make matters work, but when it have become too tough we determined to move back to in which our family lived, which became australia. So then, some years pass, i locate some work in australia and then i have a 2nd infant. So now i have a 3 yr old and a new child at domestic and i assume, “how am i going to earn cash now?!”

so i start some other commercial enterprise! Operating from domestic round my youngsters had been the humble beginnings of my 1/3 business, the creative collective. And actually, i didn’t mention that in among my “pancake enterprise” (the newspaper) and my profession in london i additionally started out a web commercial enterprise selling t shirts known as “tikanga teeshirts”. Tikanga means “subculture “and tikanga o te wa – those are maori words i’m the use of – means fashion. I created that enterprise due to the fact i used to be truly proud of our indigenous culture and language in new zealand. Although i am not maori, i used to be delivered up with it. And i desired to share with people that i used to be a proud new zealander and here changed into our subculture. So the teeshirt business i started in 2002 with no capital. I put up a website up after coaching myself html, and four years later, sold it for 5 figures. So that changed into an excellent final results, doing the entire cycle of the enterprise, really higher than the first pancake. However the 0. 33 commercial enterprise, the innovative collective, that’s wherein it all truely began. I got a emblem designed via a friend, i were given that revealed in an a3 layout and laminated, positioned it up inside the have a look at and increase we’re in commercial enterprise! I then threw up a website (now we’re absolutely in commercial enterprise), i made a enterprise card (whats up everybody, i’ve got a business!)

In the ones days it wasn’t very common for mums to work from home – or it didn’t appear to be it become. I didn’t have many friends to name on. However it’s turn out to be increasingly more popular now and i think that that is high-quality, that dad and mom who select to stay at domestic and lift children can still earn an income and do some thing they love. Now today, the innovative collective has 12 personnel throughout offices at the sunshine coast and newcastle and approximately forty contractors. I personal a business building that we perform out of at the sunshine coast and we've customers all over australia and even a few global ones. It has a spinoff company called the schooling collective, in which we teach human beings digital skills. And importantly, we’ve had loads of amusing with it all. Now there’s a high-quality metaphor obtainable approximately what it takes to be an entrepreneur that i’d love to share with you. An entrepreneur says to a mentor, “be my mentor, show me what it takes to be an entrepreneur.”

The mentor says, “okay come meet me down on the water early when it’s truly honestly dark and cold out”. The entrepreneur meets the mentor and on arrival the mentor says “walk with me” and fully dressed heads straight into the water. The entrepreneur says to the mentor “wait! I need to get undressed. I’ll get moist…”

the mentor says “no you don’t just stroll for your clothes”. So they enter the water, which is clearly in reality bloodless, and are up to their knees in their garments. The entrepreneur says “oh man this is uncomfortable! What are we doing? This is terrible!”

the mentor smiles and lightly says “that’s proper, simply hold strolling”. So they hold on foot deeper and deeper into the water, and that i should virtually complicated in this tale, however the factor is, they walk till they’re as much as their necks, and the entrepreneur at this factor is certainly suffering to hold his head above water due to the fact his garments are wet, he’s freezing bloodless, and the whole thing is weighing him down.

“i hate this!” he again complains to the mentor.

“i want to get out! I will’t cope! I’m going to drown!” he yells desperately to the mentor. And when he gets to date, the mentor says, “my friend, that is what it takes to be a an entrepreneur. You’ve got to be prepared to get from your consolation zone. You’re going to swim into un-chartered waters. You’re going to be uncomfortable, and also you’ll every so often experience like you’re sinking. At instances you can even think you’re drowning, but you’ve just were given to preserve going. You’ve got to try and swim even if things are weighing you down.”

in order that’s every other tip i have for all the budding entrepreneurs obtainable. You’ve were given to be prepared to get from your consolation quarter and make it work! My first step to get out of my consolation area, turned into getting into a enterprise award. I were in business simply six months with the innovative collective, and i idea “good day, i need to marketplace my commercial enterprise, or supply some thing a pass right here to get the word available about my business.”

so i throw my hat into the small commercial enterprise champions awards, and that i couldn’t consider it. I gained! I received the younger entrepreneur of the 12 months award in queensland in 2007. Out of this revel in i realised that coming into business awards labored quite properly and that i'd want to do extra of that because the telephones started out ringing, and enterprise began coming in. I also met some fantastic people at that event. Off the back of winning that award, i were given presented to go on tv, on a country wide display approximately extraordinary corporations. On it they depicted me because the mum who worked from home juggling my two young ones that's precisely what i was doing at the time. That equal piece came out on channel nine, after which featured at the vodafone internet site and on qantas’s inflight television and things in reality took off. And this become all from going outdoor my consolation region and coming into a commercial enterprise award. The alternative things i’ve found out along my years of being an entrepreneur, is which you want to be open to new studies, places and people. That's exactly why i say, sure to driving three hours to speak at a bundaberg tedx occasion. I wanted to come back up to fulfill new people and have a brand new revel in in a brand new region. Through my entrepreneurial/commercial enterprise journey, i’ve simply been capable of do this. For instance this is me in ny, getting into the international women in enterprise awards. And in that yr, my kids had been elderly 2 and 5, the foreign exchange rate become horrible and that i felt so responsible leaving them to attend these awards. I didn’t win that award, but it was nonetheless so really worth going and being open to these new reviews. Due to attending that event, that night, i went night clubbing, as you do with the ceo of the whole awards. And he provided me an opportunity to sell these awards in australia and new zealand, which i then did for the subsequent 10 years. And that has became having connections with some of the excellent enterprise people in australian and new zealand, which has been an outstanding ride as properly. I assume you want to put your self available, and remember you have got as an awful lot proper to be there as everyone else. Through getting into some other enterprise award software, the telstra enterprise womens awards and winning business proprietor of the 12 months in queensland, extra possibilities unfolded for me. I were given invited to go to silicon valley, which if you don’t know, is the tech capital of the arena. But anyway, it become a lifestyles-changing revel in to go to the offices of the likes of fb, to satisfy the founding father of eventbrite, visit the linkedin offices and sure, just as they are saying, they all have brilliant workplaces. The linkedin workplaces have a band room, so in case you want to head and jam for an hour for your lunch destroy, you may. And yes, facebook has free meals simply as they say, they all do. Three courses, day or night time, any time. Additionally they have unfastened ice cream, free barbers, it’s a international unto itself. So i were given so far and i was wondering what's this all about? What does all of it suggest? What do i do with all these connections and reviews i’m having? After which i remembered a teacher back at wellington high school pronouncing to me, “what do you want to be remembered for? He also stated that in case you are an remarkable mathematician or inventor you can spend your whole lifestyles seeking to training session one math equation, or to create one invention, and you may or might not be successful. But he stated to me, in case you’re to write one poem, one music, paint one artwork piece – however desirable or bad – it will be remembered, as it lives on. He become speakme about legacy of course. And that i determined i in reality liked that concept. I realised i’d always had in me a burning preference to write down a ebook. So i’ve virtually written a couple. I wrote one about my grandfathers existence, which i launched in 2006, only a few months earlier than my grandmother handed away so it changed into outstanding to try this. And that i launched another e-book in 2014 after i gained it female of the year, at the countrywide iaward due to the fact i felt pressured to make a contribution and provide back to what i knew which became in which the it industry was going and what sort of this changed into changing things and how we had a responsibility to research greater approximately technology in order to enhance our kids in a technology driven international. This phase noticed me speak to and have an effect on ministers, do lots of media observation and encourage humans to educate youngsters coding. Which now of route today is widespread in faculties. And these are all things which befell in my entrepreneurial journey. The very last tip i desired to give you nowadays, is tapping into whatever you’re captivated with, what you love to do. So, in case you do rise up each morning and go to paintings and think “i hate this, i hate those human beings, i hate this region” or “i don’t sense any experience of my soul being ignited, i don’t experience joy or whatever….” then maybe it’s time to alternate. And whether that requires quitting your job to move into something you’re greater obsessed with, or initially reducing your hours, or going returned and reading or completely converting careers, or starting a side-hustle or a totally fledged business – be courageous! If you have a burning preference or something you’re passionate about doing, i say do it! In precis, i suppose the entrepreneurial mind-set is a way of wondering. It’s specially approximately the manner you approach demanding situations and mistakes. Now i was very conscious about setting together my talk, and hoping it doesn’t come upon as pronouncing, “observe me i’ve had this exceptional lifestyles and all of these simply cool things befell,” but i need to make certain , there’s been lots of hard stuff, the treading cold deep water full dressed metaphor stuff. I’ve had the ato name me up on a friday and want $forty,000 off me on monday, due to the fact i had a crappy accountant who gave me the wrong recommendation. I’ve had team of workers and pals (no longer my friends), stealing my highbrow property and now not seeing an difficulty with it and starting up very comparable businesses, with similar names and things like that. We have consistent breaches of our trademark definitely and we’ve had to move and attraction one absolutely currently. There’s been sincerely tough life stuff. I separated from my accomplice of 18 years, and the daddy of my kids and thru this i nonetheless had to stand up and visit work. It’s tough stuff. Demanding situations with raising teens, fitness problems, money issues – therehave been weeks wherein i didn’t even recognise how i used to be going to do the payroll. You realize, among all this joyous life, there’s nevertheless those difficult matters you have to arise and cope with. But, if you maintain finding the right human Digital Marketing Company Stafford beings to be around, and if you could just hang in there and that cold water with the ones clothes on, you could definitely experience it too.

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elizabethcariasa · 4 years

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Home office tax deduction still available, just not for COVID-displaced employees working from home

My desk in my home office which I deduct when I file my taxes.

Not that I'm paranoid, but sometimes it seems like unseen others somehow know what's going on in my life.

The latest example is tax related.

Earlier this week, a #TaxTwitter pal asked that social media group about home office tax deductions. Granted, this is not an unusual question since the coronavirus pandemic has meant many of us have been working from home, a lot of us for the very first time.

Today, the Internal Revenue Service issued a tax tip on what taxpayers need to know about the home office deduction.

Coincidence?

Maybe.

Or maybe it's just that the lifestyle changes that COVID-19 has foisted upon us are prompting the same questions.

I'll buy that explanation. For now.

And I'll take it as a sign that we all need the following 6 home office tax deduction questions and answers.

1. Can I claim my home office that I'm using since my employer closed down our regular workplace, but has us still doing our jobs remotely? No. The IRS is blunt about this option and most of the pandemic's new salaried but work from home devotees: "Employees are not eligible to claim the home office deduction."

Now I know some of y'all are saying wait a minute, and you have a point. But it's an old tax law point was invalidated by the Tax Cuts and Jobs Act (TCJA).

When that GOP tax reform measure became law in late 2017, it eliminated the Schedule A itemized deduction — the one for miscellaneous expenses — where employees could claim unreimbursed business expenses, including those for a home office as long as it was for the convenience of the employer.

Under current tax law (which, by the way, is set to expire at the end of 2025 if not extended), a home office can be claimed only if it's a job you own and operate, either as your main business or as a side job to supplement (or now in coronavirus time, replace) your earnings as an employee.

This is the basis for not allowing the claim by folks who are temporarily doing their wage-paying office jobs from home.

2. What counts as a home office? When we think office, most of us envision a separate room. That's what I use, a spare bedroom is where I have my desk, filing cabinets, accessory furniture, etc. that helps me do my writing job.

But that's not the only office definition that the tax law recognizes.

Any structures on your property, such as an unattached garage, studio, barn or greenhouse, also could be the location of your home office.

OK, you don't have a sprawling property with lots of spaces that could be used as a home office. In fact, you don't even have a room to spare. No worries.

You don't have to use a full room as your home office. Tax law says any space that you use, for example, a partitioned off section of a room, may qualify as your home tax-deductible home office as long as it meets a couple of tax rules.

Which brings us to the next question and answer.

3. What is required for the IRS to accept a space as a home office? Tax law spells out two basic requirements for a legitimate home office.

First, the home office must be used exclusively for conducting business on a regular basis. For example, a taxpayer who uses an extra room to run their business can take a home office deduction only for that extra room so long as it is used both regularly and exclusively in the business.

That exclusive use component is also why you need to be extra diligent if, for example, your business office is a folding table in the corner of a room were other things happen. Make sure your family knows that this only for you to do business and that the table can't be used for other things. No kiddos doing homework. No spouse spreading out and sorting a baseball card collection.

Second, the home office space must be for your principal place of business. This, obviously, is the reason basis for not allowing the claim by folks who are temporarily doing their wage-paying office jobs from home.

But there is a little leeway here. The IRS says you can also meet this principal place of business requirement if you perform administrative or management activities from your home office because you don't have any other. Here's an example of such a situation:

John is a plumber and has his own business. Obviously, John's main work is done at his customers' homes and offices where he installs and repairs plumbing. He writes up estimates and records of work completed at his customers' premises. However, John has a small office in his home that he uses exclusively and regularly for the administrative or management activities of his business. This includes such things as phoning customers, ordering supplies and keeping his books.

The IRS says John and anyone else who conducts business outside their home but uses a part of their residence in connection with that business' administrative requirements can deduct allowable home office expenses.

Note, too, that the principal business that you conduct from your home office doesn’t have to be your only source of income.

Say you have a job as an attorney at a firm with offices downtown, but you also make additional money from your separate photography business. You use your home office to take care of the administrative tasks associated with that side hustle pictorial pursuit. That home office used regularly and exclusively for your principal photography business counts for home office deduction purposes.

The IRS created the flowchart below to office some quick guidance on whether you can claim a home office deduction.

4. What can I claim in connection with my home office? The biggest write-off here is likely the actual home office deduction. You claim it by filing Form 8829 as part of your Schedule C filing. Schedule C itself is part of your regular individual Form 1040 tax return filing and offers another array of business tax deductions.

But back to Form 8829, which is this week's belatedly (yeah, one of those weeks) featured Tax Form Tuesday document. On Form 8829 you can claim a variety — and portion — of many home expenses, including mortgage interest, insurance, utilities, repairs, maintenance, depreciation and rent.

Of course, you must meet specific requirements to claim these home-related office costs and the deductible amount of these types of expenses may be limited.

The typical limitation is the pro-rata amount of the other home expenses. For example, your home office is fraction of your home's overall space, so you are limited to claiming a fraction of allowable expenses, such as your annual total paid for electricity used.

5. How do I figure the precise amount of home costs that count at home office expenses? Good news. You get two options here.

The first option is the regular method. Here your home office deductions are based on the percentage of the home devoted to business use. Taxpayers who use a whole room or part of a room for conducting their business need to figure out the percentage of the home used for business activities to deduct indirect expenses.

For example, you use a room whose square footage is 5 percent of your home's overall spatial measurement. You paid $2,000 in electricity costs for the full year. You can claim 5 percent of that amount, or $100, as home office utility costs. The same percentage process applies to all similar full-house costs you can claim.

The regular method could offer a lot of valuable home office expenses to claim, but it requires good record keeping in case the IRS questions any of them.

Or you can opt to use the simplified home office deduction method.

This simplified home office deduction method has been available since 2013 and, filling out the 44-line Form 8829, you can use the significantly streamlined worksheet found in the Schedule C instructions. Here a rate of $5 a square foot is assigned for business use of the home calculation purposes and the maximum size for this option is 300 square feet.

That makes the maximum deduction under the simplified method $1,500.

You should choose the method that gives you the best tax break result. The side-by-side table below looks at key differences in the regular and simplified home office deductions:

Comparison of Home Office Deduction Options

Simplified Option Regular Method Deduction for home office use of a portion of a residence allowed only if that portion is exclusively used on a regular basis for business purposes Same Allowable square footage of home use for business (not to exceed 300 square feet) Percentage of home used for business

Standard $5 per square foot used to determine home business deduction

Actual expenses determined and records maintained Home-related itemized deductions claimed in full on Schedule A Home-related itemized deductions apportioned between Schedule A and business schedule (either Schedule C or Schedule F) No depreciation deduction Depreciation deduction for portion of home used for business No recapture of depreciation upon sale of home

Recapture of depreciation on gain upon sale of home

Deduction cannot exceed gross income from business use of home, less business expenses Same

Amount in excess of gross income limitation may not be carried over

Amount in excess of gross income limitation may be carried over

Loss carryover from use of regular method in prior year may not be claimed

Loss carryover from use of regular method in prior year may be claimed if gross income test is met in current year

6. I rent. Do I get to claim a home office? Yes! The home office deduction is available to both qualifying homeowners and renters.

And as for the home in which your home office located, don't just think single-family, quarter-acre lot, heavily mortgaged house.

A home for tax purposes could be a house, but tax law also considers an apartment, condominium, mobile home, boat or similar property as a home as long as these locations have kitchen and bathroom facilities. A home office could be in any of these.

Any structures on the property, such as an unattached garage, studio, barn or greenhouse, also could be the location of your home office.

And while this won't apply to most of us, the IRS warns that we can't claim a home office that's in any part of a property that you use exclusively as a hotel, motel, inn or similar business.

More information: I hope these 6 home office FAQs help you determine whether you can claim this tax break, either now during the coronavirus pandemic or any time you are operating a business. If I missed any questions or didn't provide full enough answers, just let me know by leaving a comment below.

You also can check out IRS Publication 587, Business Use of Your Home; IRS Tax Topic 509 on this subject; and the agency's online FAQs on the Simplified Method for Home Office Deduction.

These earlier blog posts also might be of interest:

IRS offers an easier way to deduct your home office

The eventual, and often unexpected, tax cost of home office depreciation

Homeowner's insurance is sort of tax deductible in some home office instances

COVID-changed work patterns mean tax hassles, possible KC workers' refunds

If this post and additional resources doesn't take care of your home office queries, I suspect, based on the "coincidental" timing of the IRS' home office deduction tip, that I'll hear about it some other way. (Cue spooky Tax Twilight Zone music!)

Now the not-paranoid me is off to change all my passwords, reset all my online security settings and put tape over my computers' cameras.