Can I deduct my coworking membership from my taxes?
In a word, yes! But there’s more to it than tallying up your dues and subtracting them from your income.
Freelancers usually use a Schedule C form to list out their annual business expenses. As long as these expenses account for more than two percent of their adjusted gross income, then you’re eligible to write them off as legitimate business expenses. The “Rent” category on Schedule C includes expenses related to a home office or coworking space, and by all means, you should take advantage.
Many freelancers enjoy the simplicity that a coworking space brings to their taxes. When relying solely on a home office, you have to calculate the square footage of the space you use for your workspace, and that workspace must be dedicated to your work (kitchen tables and living room couches don’t count). Once you define your square footage, you can deduct a percentage of your rent or mortgage and utilities from your taxes.
This is a problem for many freelancers who don’t have a dedicated workspace in their home, and calculating an accurate percentage is tricky. But with a coworking space, you can save yourself some hassle because the entire amount of your membership is tax-deductible.
Here’s what you need to know about the tax advantages of using a coworking space for your office. Read more.
At Office Evolution Hackensack, we provide virtual office, coworking, and flex office private office solutions at our shared office center. We offer meeting rooms, offices, hot desking in a shared workspace coworking lounge, a shared reception, a business address, and virtual receptionist services. We have many options and price points, and all terms are flexible. Plus, you become part of a community of like-minded professionals.
Whether you live in Teaneck, Bergenfield, Maywood, Teterboro, Hasbrouck Heights, Moonachie, Little Ferry, Rochelle Park, Dumont, Bogota, River Edge, New Milford, Hackensack, Englewood, Paramus, Tenafly, Fort Lee, and other communities nearby in Bergen and Essex counties, choosing Office Evolution Hackensack in New Jersey will help you be more professional, productive, and profitable.
Written by: Office Evolution Hackensack
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Office Evolution has more than 70 locations open, 140 units sold in markets across the country and is poised for further growth as the demand for affordable and safe, workspace close-to-home continues to rise.