Can I Write This Off?

Can I write off co-working space rent?

TL;DR

Yes, you can write off co-working space rent as a business expense if it is used exclusively for business purposes.

Detailed Answer

Co-working space rent is deductible as a business expense if the space is used regularly and exclusively for business activities. This means that you must use the co-working space solely for business purposes and not for personal activities. For instance, if you are a freelancer or a small business owner who uses a co-working space to conduct meetings, work on projects, or manage business operations, the rent paid can be deducted as a business expense. However, if the space is used for both personal and business purposes, only the portion used for business can be deducted.

Where to Put It on the Tax Form

Schedule C (Form 1040), Line 20 - Rent or lease (Other business property)

Real World Example

A freelance graphic designer rents a desk at a co-working space to meet clients and work on projects. The designer pays $500 per month for the space, which is used exclusively for business. The total annual rent of $6,000 can be deducted as a business expense.

Calculation Required

A calculation is required for this deduction.

Calculate the total amount paid for the co-working space rent over the tax year. Ensure that the space is used exclusively for business to qualify for the full deduction.

Audit Risk & Documentation Tips

Keep detailed records of the rental agreement, monthly payments, and any correspondence with the co-working space provider. Maintain a log of business activities conducted in the space to demonstrate exclusive business use. This documentation will help substantiate the deduction in case of an audit.

IRS Reference

IRS Publication 535, Business Expenses

Relevant Industries

FreelancersSmall BusinessConsultantsRemote Workers

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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 7, 2025

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