How to Make the Most of Coworking Tax Benefits

Want to support your remote or hybrid workers while protecting your company’s bottom line? Investing in coworking spaces is a smart choice—both for team morale and for your business’ finances.

Coworking spaces are the modern solution to work that blends productivity with flexibility. Beyond their appeal as inspiring work environments, these spaces hold an extra advantage for businesses: the potential for significant tax deductions. Let’s explore how integrating coworking into your business model can be a smart financial strategy.

What are coworking spaces—and why do we need them?

Coworking spaces are designed for flexibility, with the well-being of the worker in mind. Imagine stepping into an office that not only has super-fast WiFi and comfy workstations, but also boasts artisan coffee, healthy snacks, and even on-site yoga sessions to keep you feeling your best. From quiet corners for deep focus to vibrant open areas perfect for networking, these spaces are designed to cater to every work style and preference.

It’s never been just about the physical amenities, though. Coworking spaces often host workshops, networking events, and social gatherings, making them hotbeds for collaboration and community building. They’re places where startups, freelancers, and even teams from large corporations come together, offering a melting pot of ideas and opportunities.

Is there a tax benefit for businesses to offer coworking options?

Every dollar counts. Companies must leverage every available advantage when it comes to managing expenses. Fortunately, coworking spaces present a unique cost-saving opportunity—in many cases, they’re tax deductible.

For instance, employers may purchase day passes or coworking memberships for employees, and the expenses can be deducted from the business’ taxes. And, if you need to purchase supplies or technology to facilitate your group's coworking experience, you may be able to deduct those too.

The Roller
The Roller

How to maximize the tax benefits of coworking

Maximizing the tax benefits of coworking spaces doesn’t just involve crunching numbers and navigating the complexities of tax codes. Here’s some help to help you make the most of coworking space tax deductions:

Keep everything documented, but keep it simple

Sure, keeping track of every single receipt and contract might sound tedious—but it’s key to making those tax deductions count. Think of it as gathering evidence of how smartly you’re investing in your team’s work environment. And with today’s apps and software, like the Deskpass Teams platform, this doesn’t have to be a nightmare. You’ll have tools at your disposal to automate the process, turning a mountain of paperwork into a few clicks and swipes.

Decode the tax code with an expert

Tax laws? They’re notoriously convoluted, but understanding them is crucial for spotting every opportunity to save. If you’re struggling to determine which deductions are applicable for your business, bring in a guide—a savvy tax professional—who speaks the language fluently. They can point out hidden deductions you might overlook and ensure you’re not leaving money on the table.

Embrace tech tools

Leverage technology—not just for keeping records, but to make every aspect of managing coworking simpler and more efficient. Think of these tech tools as your digital assistants, always ready to sort, categorize, and remind you about the expenses that qualify for deductions.

Refresh your tax strategy regularly

The only constant with tax laws is change. Make it a habit to sit down with your tax advisor at least once a year to review your strategy. It’s well worth taking the time to make sure your tax approach stays aligned with the latest laws and your business goals.

How Deskpass Teams supports the coworking revolution

Deskpass Teams was crafted with distributed teams in mind, because we understood that the shift from traditional office setups to flexible, hybrid work models wasn’t just a trend—it’s the future. Recognizing that each business has unique needs, Deskpass Teams offers a solution that not only maximizes tax deductions; it also ensures companies aren’t spending on unused memberships or day passes.

A ‘pay-as-you-go’ pricing model means your business’s costs directly reflect actual usage, so every dollar spent is an investment in meaningful work that drives results. State-of-the-art management software even allows for the meticulous management of expenses, with the ability to set up and manage access for anywhere from 10 to 10,000 employees—complete with customizable spending caps. Even better, the Deskpass’ reporting tools provide detailed insights into usage patterns and expenditures, making budget allocation more strategic and justifiable.

Deskpass Teams offers a comprehensive, flexible solution for companies embracing the shift toward flex work. It’s an invaluable tool for businesses aiming to optimize operations and protect their financial health.

Office Evolution - East Brunswick
Office Evolution - East Brunswick

Get the most out of your coworking space

Beyond the numbers, what's the real reason behind investing in coworking spaces? Creating a vibrant, flexible, and productive environment for your team. If you’re ready to embrace coworking and give your team space to bring their best ideas to life, learn more or contact us about Deskpass Teams today.

Get a complimentary $250 Deskpass credit when you sign up for a Teams account today.

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