Business owners and some individuals can usually deduct storage units on their taxes depending on their use. Find out what you can duduct.

Can You Write Off the Cost of A Storage Unit On Taxes?

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Many businesses benefit from having extra storage. Service businesses can use storage for equipment. Sales companies can use storage for inventory. Businesses of all kinds can keep records in storage for added security and have many other potential uses for off-site storage. The good news is that the cost of the storage facilities is usually deductible for businesses and sometimes for individuals when moving.

If you're not sure if you qualify for a tax deduction, consult with an accountant or tax professional. Everyone's taxes is different and these tax tips are considered general guidelines not advice. Storage Rentals of America is not an accountant or tax advisor. We're just an awesome storage company.

General Tax Deduction Rules

There are two general circumstances where the costs of a storage facility are tax-deductible:

For businesses, rental expenditures for a storage facility are considered a tax deduction if the expense is ordinary and necessary for the business according to the Internal Revenue Service (IRS) rules.
For individuals, rental expenditures for a storage facility are only deductible if they are part of a deduction allowed for moving expenses related to work or self-employment.

Can You Write Off a Storage Unit on Your Taxes? A Simple Guide

If you rent a storage unit, you might be wondering: Can I deduct this expense on my taxes?

The answer is: Yes, but only in certain cases. The IRS allows deductions for storage costs if they are used for business purposes, rental property storage, or moving expenses (for military personnel).

This guide will break down who qualifies, when storage expenses are deductible, and how to claim them on your tax return.

Who Can Deduct Storage Unit Costs?

A storage unit is tax-deductible if you use it for business, rental property, or military relocation.

Business Owners & Self-Employed Individuals

If you own a business or are self-employed, you can deduct the cost of a storage unit if it is used exclusively for business purposes.

Examples include:

E-commerce sellers storing inventory for an online shop (Amazon, Etsy, eBay, etc.).
Contractors & landscapers keeping tools and materials.
Photographers & event planners storing equipment, props, or decorations.
Real estate agents keeping staging furniture and signs.

If the storage unit holds both personal and business items, you cannot deduct it unless you use separate units for business and personal storage.

Rental Property Owners

If you own rental properties, you can deduct storage costs if you use the unit to store:

Furniture, appliances, or tools used for your rental property.
Maintenance supplies like paint, fixtures, or repair materials.

Storage expenses for rental properties are reported on Schedule E (Supplemental Income and Loss) of your tax return.

Active-Duty Military Members Moving for Work

The IRS allows active-duty military personnel to deduct storage costs related to a permanent change of station (PCS) move.

This includes:

Storage-in-transit fees when moving to a new duty station.
Temporary storage fees for up to 30 days after relocation.

This deduction is claimed on Form 3903 (Moving Expenses).

Who Cannot Deduct Storage Costs?

Unfortunately, most personal storage expenses are NOT tax-deductible.

You cannot deduct storage costs if:

You use the unit for personal reasons (e.g., extra furniture, seasonal decorations, sentimental items).
You are moving but are not active military (the IRS removed moving expense deductions for most people in 2018).
You store personal and business items together in one unit (unless it’s mostly for business).

How to Claim a Storage Unit on Your Taxes

If your storage unit qualifies as a deductible expense, follow these steps to claim it:

For Self-Employed & Business Owners

Report storage costs as “Other Expenses” on Schedule C (Form 1040).
Keep receipts, rental agreements, and records of what’s stored.
Ensure the unit is used ONLY for business purposes.

For Rental Property Owners

Report storage expenses on Schedule E (Supplemental Income and Loss).
Store only rental-related items in the unit.

For Active-Duty Military Members

File Form 3903 (Moving Expenses) to claim storage costs.
Keep orders, receipts, and moving expense records.

Tips for Keeping Proper Tax Records

The IRS may ask for proof that your storage unit is necessary for business or rental use. To stay compliant:

Save all receipts from the storage facility.
Keep an inventory list of what’s inside the unit.
Avoid mixing personal and business items in the same unit.

Final Thoughts: Is a Storage Unit Tax Deductible?

A storage unit can be a tax deduction, but only if it is used for business, rental property, or military relocation.

** Deductible Storage Costs:**

Used only for a business.
Used only for rental property.
Used for an active-duty military move.

** NOT Deductible:**

Personal storage (furniture, holiday items, memorabilia).
Non-military moving expenses.
Mixed-use storage (both personal & business items).

If you’re not sure whether your storage unit qualifies, talk to a tax professional to avoid mistakes and stay IRS-compliant.

Still have questions? Call a tax expert today!