Is Your Self Storage Unit a Tax Deductible Expense?

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It’s that time of year again. As the old saying goes, “in this world nothing can be said to be certain, except death and taxes.”

We can’t help you stave off death, but is your storage unit rental a tax-deductible expense? Under most personal circumstances, probably not, however, if you are using your storage unit for work-related purposes then you may qualify for write-offs. In order to qualify for self-storage deductions, you must be storing under these conditions:

1) You use your storage space to store business-related items such as overstock inventory or equipment used to run your business.

Or

2) You’re storing your belongings as part of a work-related move (ex: if you are relocating to a new state for work and are storing while the move is finalized).

So whether you are an authorized Amazon seller, a comic book store owner with a surplus of back issues, or you run an accounting business from your home and need to store boxes of financial documents, renting a storage space makes sense from a business standpoint. This also applies to businesses that are equipment-intensive, such as landscapers, contractors, small manufacturers, etc., where storing large, bulky equipment may be the most efficient option.

Now if you are using storage for a work-related move — if your employer chooses not to reimburse you for moving costs — the write-off is fairly straightforward with one caveat. There is a 30 day limit for your storage deduction. This limit applies after your old home is vacated and before those items are transferred to your new home. But be warned, any storage rental fees incurred beyond 30 days would no longer be eligible for write-offs and would need to be paid out of pocket without any return.

Writing off your storage rental as a business expense and can pay for itself in the long run. For more information, visit the IRS website at https://www.irs.gov/ or consult with your accounting or tax professional.

 

***Please see below for disclaimer

Guardian Storage Centers, LLC, StorAmerica, their parent companies, affiliates, and subsidiaries, do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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