Leased Office Space as W-2 and IC

Forum|Forum|2 years ago
December 12, 2023
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I am leasing an office space (lease is under my name only, not my employer’s) and using it for both W-2 (remote worker; company HQ’d in another state) and independent contractor 1099 work. Am I allowed to write off the rent as a business expense on my IC portion of the tax return? If so, how much? E.g. full amount, pro-rata split, etc. Thank you.

Best answer by Anonymous_

Yes. You can seek reimbursement from your employer for the 50% paid on your employer's behalf (if possible).

Anonymous_

Employee

You will have to pro-rate the rent paid as the payment for use by your employer would be an employee expense and no longer deductible after the TCJA (tax reform - 2018-2025 tax years).

paymecouponsAuthor

Ok thank you. So as an example, if I paid $500/mo or $6K/yr to lease an office space, and its use was split 50% / 50% between employee W-2 work and IC 1099 work, I could only deduct $3K in expenses on Schedule C, correct?