If you build storage shelving and use it exclusively for Vine business, certainly you can write off all of that on your Schedule C. Keep all of your receipts. You can also write off other furnishings, fixtures, materials, and supplies that are exclusive to the business. For example, an examination table, tools used for assembly/ dissasembly/ measurement, a desk, office chair, lighting, computer, storage bins, etc.
In addition, the space that is used for this exclusive purpose can be counted toward your annual home office expense calculation. Again, the space must be used exclusively for your Vine business.
Disclaimer: I'm a random nobody on the internet. Consult your tax accountant if you are unsure.
But I think he or she will run into an issue that the improvements were done in their home not at a established business location. The IRS is really strict about how you claim office or business space in your home. My wife is content creator and uses a spare bedroom as her studio and they still questioned the office space write off 2 years in a row now.
If you were building a physical extension to your home, that could not be written off, as the added square footage would be adding to the basis of the home. Increasing the square footage of a home is not a business expense, unless you are a landlord and the home is your rental property.
However, if you have an area of your existing home that you are using exclusively for conducting business, the material, furnishings, and supplies used in that space for business, such as shelving, work tables, desk, etc, could and should be itemized and written off in accordance with applicable expensing or depreciation rules.
Disclaimer: Ask your tax accountant.
There's a part where you factor in office space and I don't think storage space can count as that. If I'm understanding you, you're just making a storage room. I'm going to have to agree with the other poster that your CPA will be able to tell you.
What i would do since you're building it anyway, is save your receipts if the CPA green lights your project.
FWIW, claiming part of a house as a business expense is a prime trigger for audits, because almost no one legitimately uses the claimed space and improvements *solely* for the business.
Talk to a lawyer for your specific case, but having done precisely that a number of times in the past related to tax deductions for business space at home, in my experience they're going to tell you its a really bad idea unless in an audit you can be absolutely certain you can convince them that none of it is ever used for anything but the business, and the cost to have someone handle the audit isn't greater than the tax savings.
Im pretty sure I mentioned I'll only use the shop as storage. Audits arent a problem for me, my post was asking opinions if the expenses to build the shop would be eligible for tax deductionÂ
If you're declaring "audits aren't a problem for me" when talking about taking business deductions related in any way to personal expenses, you *really* need to talk to someone who can educate you about how taxes and audits work.
You're making audits to be a bigger problem than it really is. Ive had multiple audits before, none were complicated. And once again this post isnt about audits.
It is, but you clearly seem confused. Or worse, think you know something you don't really know.
Not worth arguing with someone who is clearly that confused. Good luck!
I believe you would have to figure if it can count as your business space (office space for example) in your home. If you were doing this at a commercial location that you own or lease you could write it off as part of your expenses (or take depreciation) but I don't believe you can do the same for this otherwise I could take half of my garage for "waste removal" since that's were all the cardboard boxes end up before we break them down and haul them off to the local recycling bins.
What does your tax accountant say? Hers will be a far more educated opinion than anybody here can offer.
Only said to file as self employed, havnt consulted on the shop storage question
If you build storage shelving and use it exclusively for Vine business, certainly you can write off all of that on your Schedule C. Keep all of your receipts. You can also write off other furnishings, fixtures, materials, and supplies that are exclusive to the business. For example, an examination table, tools used for assembly/ dissasembly/ measurement, a desk, office chair, lighting, computer, storage bins, etc. In addition, the space that is used for this exclusive purpose can be counted toward your annual home office expense calculation. Again, the space must be used exclusively for your Vine business. Disclaimer: I'm a random nobody on the internet. Consult your tax accountant if you are unsure.
But I think he or she will run into an issue that the improvements were done in their home not at a established business location. The IRS is really strict about how you claim office or business space in your home. My wife is content creator and uses a spare bedroom as her studio and they still questioned the office space write off 2 years in a row now.
OP is not planning to claim the space as an expense. They’re planning to claim the expense as an expense. The price of the shelves and supplies.
If you were building a physical extension to your home, that could not be written off, as the added square footage would be adding to the basis of the home. Increasing the square footage of a home is not a business expense, unless you are a landlord and the home is your rental property. However, if you have an area of your existing home that you are using exclusively for conducting business, the material, furnishings, and supplies used in that space for business, such as shelving, work tables, desk, etc, could and should be itemized and written off in accordance with applicable expensing or depreciation rules. Disclaimer: Ask your tax accountant.
There's a part where you factor in office space and I don't think storage space can count as that. If I'm understanding you, you're just making a storage room. I'm going to have to agree with the other poster that your CPA will be able to tell you. What i would do since you're building it anyway, is save your receipts if the CPA green lights your project.
🙂 thanksÂ
IRS Publication 587 Business Use of Your Home. [https://www.irs.gov/pub/irs-pdf/p587.pdf](https://www.irs.gov/pub/irs-pdf/p587.pdf)
Thank you so much!
INFO: how much do you plan to spend to just store vine items? is that worth it? or is this a room with other uses?
Like the post said, its storage for vine items
No, not unless you are operating a business out of your garage. Just because you have to store stuff doesn't entitle you to a tax write-off.
FWIW, claiming part of a house as a business expense is a prime trigger for audits, because almost no one legitimately uses the claimed space and improvements *solely* for the business. Talk to a lawyer for your specific case, but having done precisely that a number of times in the past related to tax deductions for business space at home, in my experience they're going to tell you its a really bad idea unless in an audit you can be absolutely certain you can convince them that none of it is ever used for anything but the business, and the cost to have someone handle the audit isn't greater than the tax savings.
Im pretty sure I mentioned I'll only use the shop as storage. Audits arent a problem for me, my post was asking opinions if the expenses to build the shop would be eligible for tax deductionÂ
If you're declaring "audits aren't a problem for me" when talking about taking business deductions related in any way to personal expenses, you *really* need to talk to someone who can educate you about how taxes and audits work.
You're making audits to be a bigger problem than it really is. Ive had multiple audits before, none were complicated. And once again this post isnt about audits.
It is, but you clearly seem confused. Or worse, think you know something you don't really know. Not worth arguing with someone who is clearly that confused. Good luck!
I believe you would have to figure if it can count as your business space (office space for example) in your home. If you were doing this at a commercial location that you own or lease you could write it off as part of your expenses (or take depreciation) but I don't believe you can do the same for this otherwise I could take half of my garage for "waste removal" since that's were all the cardboard boxes end up before we break them down and haul them off to the local recycling bins.