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Business OperationsFull Deduction

Coworking Space Memberships

WeWork, Industrious, and local coworking space memberships for a professional workspace outside your home.

Tax Form

Schedule C, Line 20b

Estimated Savings

$1,000-6,000/year

IRS Reference

Publication 535

Income Level

Growing ($25k-$100k)Established ($100k+)

How It Works

Coworking space memberships provide a professional environment for content creation, meetings, and focused work. These costs are fully deductible for self-employed creators. However, there's an important rule: you generally cannot claim BOTH a coworking space deduction AND a home office deduction, unless you can clearly demonstrate different uses (e.g., home for daily editing, coworking for client meetings).

IRS Rules & Requirements

  • Only self-employed individuals can deduct (not W-2 employees)
  • Cannot claim BOTH coworking space AND home office deduction (with limited exceptions)
  • Must be used regularly for business purposes
  • Commuting and parking to coworking space are NOT deductible
  • Keep membership agreements and payment records

Real Examples

WeWork hot desk membership at $300/month = $3,600/year deduction

Local coworking space at $200/month = $2,400/year deduction

Day passes at $30/day × 50 days = $1,500/year deduction

Common Mistakes to Avoid

  • Claiming both home office and full coworking deduction simultaneously
  • Thinking commute to coworking is deductible (it's not)
  • W-2 employees trying to deduct coworking (not allowed)
  • Not keeping membership receipts and agreements

Pro Tip

If you work primarily from home but use coworking for client meetings, you may be able to claim both - but document the distinct business purposes clearly.

Related Deductions

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