Many freelancers and remote workers have common questions about the cost associated with co-working space. Discovering a new workplace that can meet and exceed your needs can make sure that you can operate with less overhead, more networking opportunities and improve flexibility. Working in these environments can be less costly but you may be wondering if you can still deduct some of the main cost of your business such as your regular co-working membership fees.
Even though you will not be able to deduct the same amount as you would for technology costs, lease fees, environmental costs and more, your co-working membership will remain tax-deductible. Renting an office space will deliver a significant tax deduction as you be able to deduct a portion of your membership to save on costs associated with your business. You’ll already be saving money by paying the base rental fee and then you get a portion of that rental fee back to manage your business expenses come tax time. Make sure that you are keeping receipts associated with your printing costs, the rental of conference rooms, the rental of equipment and any extras that you may have incurred for your business outside of the base rental fee.
You may not be able to deduct certain expenses such as food during a business day unless you have gone out for a meal as part of a business lunch or sales lunch. It’s important that you are not trying to over expense food costs or take regular meetings for lunch or you may be audited on your taxes. Expensing a regular lunch that you take by yourself is not allowed and these costs can add up or potentially put you in a category where you might be accused of tax fraud.
If you are temporarily working in a co-working space and still continuing to work from home, you can also qualify for deductions associated with the area you use for your home office. If you’re using a portion of your home for a workspace, consider the tax seductions that you could also use here as an employee or business owner.
If you are interested in learning more about the tax deductions associated with a co-working space, contact us today.
This post was written by Tara Kintz. Tara is a director at Signature Workspace which is a Virtual Office Tampa. Signature Workspace, owned and operated by Cantor Fund Management, offers services and amenities such as private offices, flex space, co-working space, virtual offices, meeting/conference rooms, and more.