I am in the process of creating a small space for recording instruments and voice. My house has a nice little room in the basement with a wall-to-wall carpet. I am in the process of acoustically treating the room. I keep track of all my music-related purchases with an excel sheet. This is useful for keeping track of how much I actually spend on this project, as well as having a detailed list of everything I have.
Here are some pics of how it looks (as of Jan 2014): http://imgur.com/a/KRtZX
There is more info on gear and stuff in the link above.
Central recording piece is of course my laptop, a Sony Vaio. There is also a fireplace in here.

As for plans of expansion, I am thinking of obtaining some sort of desk for laptop, keyboard and monitors. I also need to make more acoustic treatment panes. In the long run I hope to move everything into a larger space. My garage might be a possibility, but walking out and into the garage in order to record and play around seems... impractical.
Anyway...
Post your home studio!