Coworking + Taxes: What You Need To Know

Coworking spaces have revolutionized the modern workspace, offering flexibility, collaboration, and affordability for entrepreneurs, freelancers, and remote workers. However, as tax season approaches, it's essential to understand how using a co-working space can impact your taxes. Here's what you need to know:

Deductible Expenses:

• Membership Fees: In most cases, membership fees for a coworking space are tax-deductible as a business expense. Keep records of your payments for tax purposes.

• Office Supplies: Any office supplies you purchase for your work in a coworking space can be deducted as business expenses. This includes items like stationery, printer ink, and software.

• Equipment: If you purchase equipment for your business, such as a laptop or desk chair, you may be able to deduct the cost as a business expense.

• Utilities: If your membership includes access to amenities like internet, electricity, or water, you may be able to deduct a portion of these costs.

Home Office Deduction:

• If you use a coworking space because you don't have a dedicated home office, you may still be able to deduct a portion of your coworking expenses.

• To qualify, your home office must be used exclusively for work, and the coworking space must be necessary for your business operations.

Record Keeping:

• Keep detailed records of your coworking expenses, including receipts and invoices. These will be essential for claiming deductions and avoiding any potential issues with the IRS.

• Consider using accounting software or apps to help you track your expenses throughout the year.

Tax Credits:

• Depending on your location and business structure, you may be eligible for tax credits related to your coworking expenses.

• Research tax credits available to small businesses and self-employed individuals in your area.

Consult a Tax Professional:

• Tax laws and regulations can be complex and may vary depending on your specific circumstances.

• Consult with a tax professional who can provide personalized advice and ensure you're maximizing your deductions while staying compliant with the law.



In conclusion, coworking can offer many benefits for your business, but it's essential to understand how it impacts your taxes. By keeping detailed records, understanding deductible expenses, and consulting with a tax professional, you can navigate tax season with confidence and ensure you're taking full advantage of any tax benefits available to you.