Is Coworking Space Tax Deductible for Your Business?

Yes, coworking space is generally tax deductible for self-employed individuals, freelancers, and small business owners. The IRS allows you to deduct ordinary and necessary business expenses, and coworking space typically qualifies when used for legitimate business purposes.

Key Rules for Deducting Coworking Space

Rent paid for a workspace outside the home is fully deductible as a business rental expense.

Requirements to Claim This Deduction

• Must be used for business purposes
• Keep monthly invoices and membership agreements

How to Document Coworking Space for Tax Purposes

Proper documentation is critical for any business deduction. For coworking space, you should:

• Keep all receipts and invoices showing the amount paid
• Record the date of the expense and the business purpose
• If mixed-use, maintain a log showing business vs. personal usage
• Store records for at least 3 years (7 years for major purchases)

Source: IRS Publication 535 (Rent Expense). This information is for educational purposes only. Consult a qualified tax professional for advice specific to your situation.