Section 179 Tax Benefit for Relocatable Storage Units

Did you know that relocatable storage units classify as equipment? This means that self-storage operators can take advantage of the Section 179 tax benefit. Section 179 aims to boost the economy and help small and medium-sized businesses. It allows the write off of an entire price of qualifying equipment in the same year of its purchase. That’s good news for us!

Relocatable storage units are portable and moveable. Therefore, they can be classified as equipment instead of as a building or permanent structure. Not only does this help self-storage operators bypass the lengthy process of permitting and zoning. But it’s also a great tax advantage when classifying these convenient storage units as equipment. In most cases, the units are eligible for 100% deduction after just one year. Most relocatable storage units are financed with an equipment lease through a bank versus having to take out a traditional construction loan. The entire process requires less effort and creates an opportunity for the self-storage operator to generate additional revenue in a faster, more cost-effective manner.

What Qualifies?

Storage operators can maximize their upcoming tax deductions. With Section 179, businesses use the cost of the equipment as an immediate expense deduction. For example, eligible items include machines, tools, tractors, trucks, technology, software, office furniture, storage units, and other similar equipment. Enter relocatable self-storage units! These flexible, moveable storage solutions are the ultimate in convenience. Facility owners can get a a break on their taxes in the same year they buy their relocatable storage units. So, they can start growing their business immediately. And start making strategic purchasing decisions for 2022. 

How It Works

With Section 179, you can put your assets on your balance sheet – so they don’t become an expense. You will reduce your overall profit and maximize your tax savings. Businesses can use Section 179 to purchase needed equipment right now, instead of waiting. Companies taking advantage of Section 179 deductions aren’t paying less taxes, but they are saving money in the year they made the purchase. Without Section 179, those savings would take 5+ years to show. This encourages small businesses to purchase more while not taking away from the overall tax revenue.

Small businesses need all the help they can get. Ask your tax consultant how you can use Section 179 to your advantage. Also check out the Section 179 website for more detailed information.