Is a coworking membership really deductible?

Yes, as an ordinary business expense, with no exclusive-use test to pass. The commute to it is not deductible, which is why the calculator separates the two.

Can I take the home office deduction AND rent a desk?

Only if the home office remains your principal place of business used regularly and exclusively. Working mostly from the coworking space usually forfeits the home deduction; this comparison assumes you pick one.

Does the home office deduction raise audit risk?

The simplified method ($5 per square foot, capped at 300) is low-drama and well-trodden. Claim a space you can photograph with a straight face and keep the math defensible; the deduction exists to be used.

Small business

Coworking vs home office calculator

The desk costs $350 a month; the spare room earns a deduction. This puts both on an after-tax annual basis: what coworking really costs once the membership deducts, versus what the home office hands back.

Your numbers

Currency

Coworking membership per month

The desk or office you would rent. Deductible as a business expense.

Commute and extras per month

Transport, parking, the lunches you would not buy at home. Commuting is not deductible.

Marginal tax rate

Federal + state + SE tax on your last dollar. 25-35% is common.

Home office square feet

Space used regularly and exclusively for work.

Home square feet

Total.

Annual home running costs

Rent or mortgage interest, utilities, insurance, repairs.

Results

Annual cost of choosing coworking$3,816

Coworking, before tax: $4,320
Coworking, after deduction: $3,240
Home office deduction: $1,920
Tax saved at home: $576

Estimate

workingfigures.com/calculators/coworking-vs-home-office-calculator

The formula

Coworking net = (membership + commute) × 12 − membership × 12 × tax rate. Home savings = best of simplified ($5/sq ft, cap 300) and actual (costs × office share) × tax rate. The gap adds what you pay to what you give up.

What this ignores

Productivity, loneliness, and clients: if a coworking space wins you one project a year, it has paid for itself. This page prices the cash; only you can price the rest. Home office rules require regular and exclusive business use.

FAQ

Is a coworking membership really deductible?: Yes, as an ordinary business expense, with no exclusive-use test to pass. The commute to it is not deductible, which is why the calculator separates the two.
Can I take the home office deduction AND rent a desk?: Only if the home office remains your principal place of business used regularly and exclusively. Working mostly from the coworking space usually forfeits the home deduction; this comparison assumes you pick one.
Does the home office deduction raise audit risk?: The simplified method ($5 per square foot, capped at 300) is low-drama and well-trodden. Claim a space you can photograph with a straight face and keep the math defensible; the deduction exists to be used.