Maximizing Storage Deductions
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22:40
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At 3:59 in
IRS audit Triggers, pre season tax planning and strategies for small business owners. 4 k video 2/2
What happens here
For business owners who store inventory or materials at home, deductions can be claimed for the portion of the home used for storage. Unlike a home office, a storage area does not need to meet the 'exclusive use' rule; it can be a garage, a basement, or another room as long as it's used regularly for business storage. The deduction is calculated similarly to the home office deduction, based on the percentage of space used for storage relative to the entire home and applied to relevant household expenses.
Goal: Claim deductions for business-related storage space within the home.
Tools and materials
- Calculator — Calculating the percentage of home used for storage
- Tape Measure — Measuring the square footage of your home and dedicated storage space
- Home's square footage details N/A — Calculating the storage space percentage
- Records of household expenses N/A — Documenting shared expenses for proportional deduction
What they say
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What they say
(1,398 characters)Auto-generated from the video audio.