Leased Office Space as W-2 and IC

[paymecoupons]

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. 

[Anonymous_]

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).

[paymecoupons]

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?

[Anonymous_ · Accepted solution]

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