When you are filling out your tax return, there are various things that you should know about whether you can deduct storage costs. In some cases, you may be able to claim a deduction if these expenses are business-related.
Personal Storage Is No Longer Deductible
The previous tax laws allowed for a deduction for a deduction for storage when it was needed in connection with relocation for a new job and certain tests were met. However, under the new tax laws, the last year for the moving expenses deduction was 2018 and the deduction no longer exists. Now, these expenses are no longer deductible and if an employer covers your moving expenses, it is now treated as taxable income. However, given that you can no longer take the moving expenses deductions, you should try to negotiate the payment of these expenses from your employer.
Storage for Business May Be Deductible
Storage for business is a necessary and legitimate expense for your business. Your storage space is as much a part of your business as is your physical location even though it is contained off the premises of your business. This is because it houses your business property. As such, it can be treated as an expense for purposes of your tax return and can be a reduction of your business income. The rental cost for commercial storage in Las Vegas can be added to any other rental costs that you have and can be factored into your tax return.
Deduction Rules for Mixed Use Storage
If part of your storage unit that you are renting is used for business storage and the other part is personal, there are specific rules that you should follow. You should estimate the percentage of the storage unit that is used for business purposes and only deduct for that portion of the storage unit. It is best to back your estimation up with photos as documentation just in case the IRS questions your figures on your tax returns.
By admin|2019-04-25T21:00:06-07:00April 25th, 2019|Blog|Comments Off on Storage Space and Your Taxes