A coworking membership belongs on Line 20b, rent or lease of other business property.
Why line 20b
A coworking membership buys ongoing use of business premises, a desk, a dedicated seat or a private room, so it is rent of other business property on line 20b. An occasional day pass is different in character: there is no continuing right to the space, and it is normally itemised in Part V and carried to line 27a. The test is whether you hold a recurring right to occupy space or are buying access a day at a time.
On the printed form this is line 20b. Line 20 is the total of 20a and 20b, so a worksheet that reports one line 20 figure is adding the two together.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a coworking membership lands on Line 20b without you sorting it.
Start for freeWhat a coworking membership is confused with
- Line 27a, other expenses
- A recurring membership with a desk you can count on is 20b, while a one off day pass with no continuing right to the space is normally itemised in Part V and carried to line 27a.
- Line 18, office expense
- Add ons inside a coworking bill, mail handling, printing credits or phone answering, are office overhead on line 18 rather than rent.
- Line 30, line 30, business use of your home
- A coworking desk does not by itself kill a home office claim, but the home space still has to meet the line 30 tests on its own facts.
Examples that belong on line 20b
- $299 a month for a WeWork dedicated desk
- $550 a month for a private one person office at a local coworking space
- $180 a month for a part time membership with ten days of access
- $3,588 a year paid up front for a desk membership
What does not belong here
- A one off day pass, which is usually reported in Part V.
- Printing and mail credits bundled in the bill, which are office expense.
- A gym or social club membership sold alongside the workspace.
What to keep
Keep the membership agreement and the monthly invoices, which show the tier and whether a desk or office is included. An invoice that itemises mail and printing separately makes the 20b and line 18 split easy.
Other expenses on line 20b
| Expense | Line |
|---|---|
| a storage unit rental | Schedule C, Line 20b |
| event or venue hire | Schedule C, Line 20b |
| office rent | Schedule C, Line 20b |
| studio or workshop rent | Schedule C, Line 20b |
| warehouse rent | Schedule C, Line 20b |
Related lookups
- Where do client gifts go on Schedule C?
- Where does printer ink go on Schedule C?
- Can I deduct homeowners insurance for an office?
Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a coworking membership lands on Line 20b without you sorting it.
Start for free