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Maximizing Storage Deductions

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22:40
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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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office but you don't have a treadmill and pull-out couch and what about a garage because a lot of these guys while they're in the growth stage you know they're storing their stuff at their home in their garage in their how did how would that that's awesome you brought that up because different from the exclusive loot use thing is storage so that can be your garage another room in your house that doesn't have to be exclusive use that you can also take that portion that you're using for your home for storage how much what's the percentage it's the same calculation basically disk assembly so big garages so that's how big your community production for storage too and there's a simplified method as well for $1,500 which sometimes you know will do that you know of people but I guess it just depends all this aspie you know are you storing stuff yes you know half my garage and you know some people are my old basement and so yeah it varies but storage does not have to meet the exclusive use so that's a big deduction that I think people miss out on you know people always get nervous about I don't want to depreciate my own you know and but we don't really we don't I don't take the actual depreciation but but that is considered part of the office deduction you know as up if you if you take that is part of it is for the depreciation on that section of your home so let's talk about another

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