Is office rent considered an expense

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Is renting an office an expense

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Yes.

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If you have a business, office rent for operating that business can be deducted as a business expense against the income. If you rent an office as an employee who receives a W-2, this would not be deductible.

There are three common tests for deductibility of business expenses:

1. Ordinary and Necessary - The expense must be ordinary and necessary. Generally, this means that the expense is commonly found in the specific business, and is helpful and appropriate in running the business.
2. Business Purpose - Expenses must have a legitimate business purpose to be considered deductible.
3. Reasonableness - The tax law requires that the deductions be reasonable to be deducted.

 The resources below are useful for understanding common business deductions.

Taking Business Tax Deductions

What self-employed expenses can I deduct?

Business Use of Vehicles

The Home Office Deduction

IRS Publication 535