Are Self Storage expenses a write off?
Self-storage units are the best for small business owners, aren’t they?
They come in handy to hold a wide variety of necessities, such as extra inventory, materials used to create your product, excess office supplies, parts and equipment that aren’t immediately needed in your repair shop, and old records and files that you’d prefer not to have cluttering up your work space, yet you know you should keep on hand for future reference.
But when you use a self-storage area for your business, it seems like it’s something you should be able to write off on your business taxes. And the good news is that you can.
How Can I Deduct Self-Storage Expenses?
While you might initially consider the storage space your “home office,” especially if you visit there a lot for your business, you don’t want to classify the business deduction the same way you would your den or other dedicated work space, says Gary Blumenthal, CPA and vice president of Betro and Company in Foxboro, MA. Instead the storage space actually should be classified as “rent.”
That means the rental charge would be added to any other rental charges you might incur for leased space, such as for an office or factory, and deducted as a business expense as part of the rental category, says Mark H. Misselbeck, C.P.A., M.S.T. with Katz, Nannis + Solomon, P.C, in Waltham, MA.