PatriciaV
Employee Tax Expert

Deductions & credits

Yes, you may deduct any expenses that relate to your business on Schedule C

This includes utilities for a separate work space. You are not required to take the Home Office Deduction in order to claim the expenses. 

You would need to allocate shared expenses, however. For example, if your utility bill covers the entire property, you would need to allocate that expense using any reasonable method. Most taxpayers use square footage. You might consider installing a separate utility meter for the workspace if the rate of consumption is much higher than the square footage would imply (ie: using a kiln, welder, or other large equipment).

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