Are Storage & Moving Expenses Tax-Deductible?

Are Storage & Moving Expenses Tax-Deductible - Callbox Storage Answers on the blog

Moving to a new home can be stressful, disorganized, and tiring. Sometimes, you simply have too much stuff to know what to do with. Maybe your need to store some work-related items you don’t need at the moment, or perhaps you have old files that need a secure home. However, your current storage room doesn’t have the capacity to hold your belongings. What do you do?

That’s where Callbox comes in! We can help you make the process of moving and storing effortless and stress-free. And what’s more, we have some valuable information to share on how to write off some of your moving/storing expenses as being tax-deductible.

While not all moving/storing expenses are tax-deductible, there are certain situations that will allow you to write off those taxes. Let’s dive into the details so that when tax season comes around, you’ll be ready to take the necessary steps in writing off those taxes, saving money in the process.

Situation #1: Your Storage Unit Is Meant for Business Purposes

In other words, your storage unit is a necessity for your business. Without your storage unit, you would not be able to complete your work and run your business in an effective manner. Here are a few examples:

Perhaps you’re a commercial artist, and you need a storage unit to house excess materials when they’re not being used. Maybe you’re a local bookstore owner with a surplus of children’s books, and you need a place to store them so that your store isn’t cluttered. Maybe you work in construction or electricity, and your home doesn’t have enough storage space to hold your supplies. You need a storage unit in order to run your business smoothly.

As long as you can prove that your storage unit is a vital part of your business, you can write off taxes for that unit, according to the IRS.

Situation #2: Your Storage Unit Is for a Work-Related Move

Often, our careers call us to new, exciting places, but the moving process is anything but exciting. However, if you’re about to move and plan on using a storage unit, those expenses are potentially tax-deductible.

For example, let’s say you’re moving for work, and your employer does not pay you for your moving expenses. In that situation, you can easily write off those storage unit taxes as tax-deductible.

However, you have to act fast. There is a 30-day limit for your storage tax deductions, which begins right after you leave your old home. If you wait until after those 30 days have passed, then you are no longer eligible for a deduction.

Also, you have to be at least 50 miles away from your former home, and if this is your first workplace, you have to be at least 50 miles away from your old residence. If you are not at least 50 miles away, you have to prove that your move was essential for your new job or is helping you save time and money.

More Tax-Deductible Expenses for Your Move

Storage-units aren’t the only expense you can write off on your taxes when you move to a new home due to work! Here are some other expenses that are potentially tax-deductible, depending on your circumstances, that you can note on Form 3903.

  • Lodging expenses of your family — if you paid for lodging while you moved out of your old house, then you’re eligible for a tax deduction.
  • Packing and transportation of belongings — you can deduct the cost of packing and shipping belongings to your new home.
  • Price of gas — if you traveled by car to your new home, you’re eligible for a tax deduction on gas expenses.

Unfortunately, you cannot deduct the cost of food, home buying or selling fees, expenses from personal trips on the way to your new home, or moving costs of new furniture that you purchase on the way to your home. Still, there are many opportunities to save money while moving, so why not take advantage of them?

Save More Money with Callbox Storage

Now that you know it’s possible to save money on moving and storing expenses, why not save even more money?

Instead of charging you for more space than you need, Callbox rents you the storage space you actually need. We also have a concierge service, designed to take even more work out of the moving and storing processes. Using our online photo inventory system, you can search through your storage, find the item you’re looking for, and we’ll ship it straight to your door. We provide our concierge service once a month, every month, for free!

Moving can be stressful, but it doesn’t have to. Callbox takes the hassle out of self-storage with pickup, storage, and delivery. Click below to get your FREE quote started!

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