Can you write off a storage unit for business inventory?

Generally, a storage unit used to hold business inventory can be deductible, but it depends on how the space is used and how the expense is treated on your return.

A few practical rules:

• Business use only: You can usually deduct the business portion if the unit is used for business inventory. If you also store personal items there, only the business-use share should be deducted.
• Keep records: Save the lease, receipts, payment records, and anything showing the unit was used for business inventory.
• Reporting: The deduction is usually claimed as a business expense, but the exact category or line can vary by tax year and by how your business files.

One important caveat: if the inventory is stored at or near your home, special home-office or storage rules may apply, and the result can differ from a standard off-site storage unit deduction.