Is cloud storage line 18 or line 13?

Buying storage hardware, a network drive or a server, is an asset you depreciate on line 13 through Form 4562, while renting space on someone else's hardware by the month is line 18.

Is cloud storage line 18 or line 8?

If what the plan really buys is marketing, an email campaign platform for instance, the cost is advertising on line 8 even though it arrives as a software bill.

Where does cloud storage go on Schedule C? Line 18

Q: Where does cloud storage go on Schedule C?

Cloud storage belongs on Line 18, office expense. A monthly or annual storage plan buys a service for a period, not an asset, so it is office overhead on line 18 and nothing is capitalised. The business has to be the user: deduct only the business share if the same account also holds family photos. The vendor name does not matter, Dropbox, Google Workspace and Backblaze all land on the same line.

Short answer Schedule C, Line 18 Office expense

Cloud storage belongs on Line 18, office expense.

Why line 18

A monthly or annual storage plan buys a service for a period, not an asset, so it is office overhead on line 18 and nothing is capitalised. The business has to be the user: deduct only the business share if the same account also holds family photos. The vendor name does not matter, Dropbox, Google Workspace and Backblaze all land on the same line.

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 cloud storage lands on Line 18 without you sorting it.

Start for free

What cloud storage is confused with

Line 13, depreciation and section 179 expense deduction: Buying storage hardware, a network drive or a server, is an asset you depreciate on line 13 through Form 4562, while renting space on someone else's hardware by the month is line 18.
Line 8, advertising: If what the plan really buys is marketing, an email campaign platform for instance, the cost is advertising on line 8 even though it arrives as a software bill.

Examples that belong on line 18

$119.88 a year for Dropbox Plus holding client files
$14.40 a month for Google Workspace Business Starter with 2 TB of Drive
$9.99 a month for 2 TB of iCloud used for receipt photos and job site pictures
$35 a month for Backblaze backing up the work laptop

What does not belong here

A network attached storage box or external drive you bought, which is an asset.
The personal share of a family storage plan.
Hosting that serves a marketing website, which is advertising on line 8.

The limit that applies

Only the business-use share is deductible when a plan is shared with personal use.

What to keep

Keep the vendor invoices or the annual receipt email, which show the plan and the period. If the account is shared with the household, write down the basis for the business percentage once and keep applying it.

Other expenses on line 18

Expense	Line
a desk lamp	Schedule C, Line 18
a mixed order of supplies and groceries	Schedule C, Line 18
a paper shredder	Schedule C, Line 18
a password manager subscription	Schedule C, Line 18
a PO box rental	Schedule C, Line 18
a software subscription	Schedule C, Line 18
a virtual mailbox	Schedule C, Line 18
a work app subscription	Schedule C, Line 18
accounting software	Schedule C, Line 18
office coffee	Schedule C, Line 18
office stationery	Schedule C, Line 18
postage	Schedule C, Line 18

Related lookups

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.

Start for free