What's deductible?
- Monthly or annual coworking membership fees
- Day passes and drop-in fees
- Dedicated desk or private office rental
- Meeting room and conference room rentals
- Printing, scanning, and mail services
- Parking at the coworking space
- Event space rental for business events
Basically, any expense directly related to using the coworking space for business is deductible.
Can you deduct both a coworking space AND home office?
Yes — but it's nuanced. You can deduct your coworking membership and claim the home office deduction if you meet the requirements for both:
- Your home office must still be used regularly and exclusively for business
- You must have a legitimate business reason for both spaces
Many freelancers use a home office most days and a coworking space occasionally for meetings or focused work. Both deductions can coexist.
Where to deduct it
Report coworking expenses on Schedule C:
- Line 20b (Rent — other business property) for membership fees and desk rental
- Line 18 (Office expenses) for printing, supplies, and services
- Line 27a (Other expenses) for items that don't fit elsewhere
You have a WeWork hot desk membership at $300/month plus occasional meeting room rentals averaging $50/month.
Annual deduction: ($300 + $50) × 12 = $4,200
If you also have a qualifying home office at 120 sq ft using the simplified method: 120 × $5 = $600
Total workspace deductions: $4,800
Coworking space fees are treated as rent expense under IRS Publication 535 (Business Expenses). Report on Schedule C, Line 20b.
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