What's deductible?
- Monthly coworking membership
- Day passes and drop-in fees
- Meeting room and conference room rentals
- Private office rentals within coworking spaces
- Printing and mailing services at the space
- Virtual office or mailbox services
Coworking vs. home office
You can deduct a coworking membership AND a home office deduction if you use both. They're separate expenses. Your home office covers the space in your home. The coworking membership covers the external space.
However, if you work primarily from the coworking space, your home office might not meet the "principal place of business" test unless you also regularly work from home.
Coffee shop as coworking?
Buying coffee at a cafe while you work is technically a personal expense, not a deductible workspace cost. The cafe isn't charging you for workspace. However, the coffee could be deductible as a business meal if you're meeting a client there.
IRS Reference
Coworking fees are rent expenses. Report on Schedule C, Line 20b (Rent or lease - other business property).
Coworking fees are rent expenses. Report on Schedule C, Line 20b (Rent or lease - other business property).
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