A storage unit rental belongs on Line 20b, rent or lease of other business property.
Why line 20b
A self storage unit is business property you rent, so it goes on line 20b alongside office and warehouse rent, not on 20a with the equipment. It has to hold business property: records, stock, tools or equipment. A unit holding the family's furniture during a move is personal, and a unit holding both is deductible only to the business extent, which is hard to support and easier to avoid by not mixing.
On the printed form this is line 20b. Line 20 is the total of 20a and 20b, so a worksheet that reports one line 20 figure is adding the two together.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a storage unit rental lands on Line 20b without you sorting it.
Start for freeWhat a storage unit rental is confused with
- Line 30, line 30, business use of your home
- Storing business property in your own garage is not a 20b rent deduction, it runs through the business use of home rules on line 30 if it qualifies at all.
- Line 20a, rent or lease of vehicles, machinery and equipment
- A mobile storage box or container delivered to a site is closer to equipment hire on 20a, while a fixed unit at a storage facility is 20b.
- Part III line 39, part iii line 39, other costs
- A business caught by the uniform capitalisation rules may have to roll storage costs for inventory into Part III rather than deduct them currently.
Examples that belong on line 20b
- $145 a month for a 10 by 10 unit holding stock and client records
- $89 a month for a small unit holding seven years of paper files
- $1,740 of annual storage charges for trade tools and spare equipment
- $210 a month for a drive up unit used by a market trader for inventory
What does not belong here
- A unit holding household goods.
- Insurance bought at the facility counter, which is insurance on line 15 rather than rent.
- A late fee on a personal unit.
What to keep
Keep the rental agreement in the business name and the monthly invoices, and keep a list of what is in the unit. That list is what answers the question of whether the unit is a business one.
Other expenses on line 20b
| Expense | Line |
|---|---|
| a coworking membership | Schedule C, Line 20b |
| event or venue hire | Schedule C, Line 20b |
| office rent | Schedule C, Line 20b |
| studio or workshop rent | Schedule C, Line 20b |
| warehouse rent | Schedule C, Line 20b |
Related lookups
- Can I deduct homeowners insurance for an office?
- Where do car lease payments go on Schedule C?
- Where does freight on inventory go?
Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a storage unit rental lands on Line 20b without you sorting it.
Start for free