Okay, let’s talk about something less fun than organizing but way more important: money. Specifically, keeping more of it.
When I first rented a storage unit for my business, I just saw it as a necessary cost. A line item. Like buying paper towels for the office. Then my accountant asked me a question that changed everything: “Is that unit used exclusively and regularly for your business?”
I said, “Yes. It’s only my vintage t-shirt stock and packing supplies.”
She smiled. “Good. That’s a deductible business expense.”
A lightbulb went off. This wasn’t just a cost. It was a business asset that could lower my tax bill. But—and this is a huge but—you have to do it right. The IRS doesn’t mess around.
What Can You Actually Write Off?
You can’t just write off your cousin’s baseball card collection because it’s in the corner of your unit. The rules are specific.
- The Rent: This is the big one. 100% of your monthly rental fee for the unit.
- Related Supplies: The shelving you bought to organize it? The lock? The moving dolly? The uniform boxes and label maker tape? All deductible.
- Transportation: This is the sneaky one. Mileage driving to and from the storage unit for business purposes can be deducted. Going to drop off new stock? Deductible. Going to pick an order? Deductible. Going to just “check on things”? That’s a gray area. Keep it for active business tasks.
The Golden Rule: Exclusively & Regularly
This is the phrase that will save you during an audit.
- Exclusively: The space must be used only for your business. Not 95%. 100%. You cannot store your winter tires, your holiday decorations, or your kid’s college dorm furniture in there. Not even in a little corner. This is the hardest rule for people to follow, but it’s the most important. Mix personal items, and you risk losing the entire deduction.
- Regularly: You need to be using it consistently as part of your business operations. An occasional visit might not cut it. Regular trips to add/remove inventory, manage stock, etc., establish this.
How to Prove It (The Boring, Essential Part)
The IRS operates on proof. If you get a letter, you need a paper trail. This isn’t hard; it’s just habitual.
- Keep a Mileage Log: Use an app on your phone. Note the date, purpose of the trip (“Pick order #1045 for shipping”), and odometer readings. “Several trips to storage” on your spreadsheet won’t fly.
- Save Every Receipt: The rental agreement, the receipt for the lock, the Home Depot receipt for the shelving. Scan them and save them digitally in a folder called “Storage Expenses 2024.”
- Take Photos: Seriously. Every few months, take clear, wide-angle photos of the inside of your unit. This is visual proof that it contains only business inventory and equipment. Date-stamp the photos.
A Real-World Scenario: Sarah the Ceramicist
Sarah makes mugs. Her home studio is for creating. Her garage was for storing clay, glazes, finished mugs, and shipping boxes. It was a mess. She got a 5×5 climate-controlled unit.
- What she stores: Bulk clay (heavy!), bottles of glaze, bubble wrap, boxes, and her inventory of finished, ready-to-ship mugs.
- Her process: She creates in her studio. Once mugs are fired, she transports them to the unit for safekeeping and eventual packing. She fulfills orders directly from the unit.
- The deduction: She deducts the $85/month rent, the shelving, her mileage for 2-3 trips a week, and all her packing supplies. This saves her over $1,000 a year in taxes, making the unit’s real net cost much lower.
Making It Work For You
The key is intention. You’re not just renting space. You’re establishing a satellite business location. Treat it with the same seriousness as your home office or storefront.
For us at Storage One Hubert, we make this easy for our business clients. We provide clear, professional monthly invoices that are perfect for your tax records. We get that this is a business tool, not just an empty room. A lot of our customers even use our address (with a specific unit #) as a “warehouse” location on their website, which looks more professional than a P.O. Box.
Talk to your accountant. Get their specific advice. But don’t let that storage unit just be an expense on a spreadsheet. Understand its power. A little bit of organization and documentation turns it from a simple cost into a smart financial strategy for your growing business. Now that’s a good use of space.
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