Can I deduct co-working space membership fees as a business expense in Ontario?
Yes. Fees paid for a co-working space membership or desk rental used for business purposes are generally deductible as a business expense. Unlike home office expenses, co-working space costs are straightforward: they are a direct business rental expense, similar to renting office space. You would claim them under rent or other business expenses on Form T2125.
If you use the co-working space exclusively for business (which is typical), the full cost is deductible. If you also use the membership for personal activities, only the business portion is deductible. Additional services bundled into the membership — printing, meeting room credits, internet — that are business-related are also deductible as part of the cost.
A practical note: if you have both a co-working membership and a home office, you may claim both, provided you meet the home office eligibility test for the home workspace (principally used for business or exclusively used for business and meeting clients). However, you cannot claim the same space or cost twice. Document your use and keep your membership invoices and payment records.
Key takeaways
- Co-working membership fees are a direct business expense, fully deductible if used for business.
- Unlike home office expenses, there is no floor-area calculation — it is a straightforward rent deduction.
- You can claim both a co-working membership and a home office deduction if both qualify separately.
- Retain invoices and payment records for the membership fees.