What qualifies?
- Storing inventory or product stock
- Business equipment not currently in use (seasonal items, backup equipment)
- Business records and documents (required to keep for IRS)
- Tools, supplies, and materials
- Furniture or fixtures between office locations
- Vehicle storage for business vehicles
Mixed use
If your storage unit contains both business and personal items, estimate the percentage used for business. If half the unit holds business inventory and half holds personal furniture, deduct 50% of the monthly rent.
To keep things clean, consider a separate unit for business items. The full cost is deductible and there's no allocation headache.
Example
You run an e-commerce business and rent a 10×10 storage unit for $150/month to store inventory.
Annual deduction: $150 × 12 = $1,800 on Schedule C, Line 20b (Rent)
IRS Reference
Storage rental for business use is deductible under IRS Publication 535 (Business Expenses) as rent paid for business property. Report on Schedule C, Line 20b.
Storage rental for business use is deductible under IRS Publication 535 (Business Expenses) as rent paid for business property. Report on Schedule C, Line 20b.
Track storage costs automatically
Hivebooks auto-categorizes your monthly storage rental as a business rent expense. One less thing to remember.
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