Self-storage facility owners can benefit from Section 179 tax deductions. Relocatable self-storage units can classify as equipment rather than permanent structures. So, these units offer tax savings, allowing for a full write-off of the purchase price within the same year. Be sure to ask your tax consultant about Section 179 tax deductions to see what tax benefits your business may have. And order your relocatable self-storage units now to qualify for tax benefits this year! Boxwell’s current lead time is 12-14 weeks (about 3 months).
What is Section 179?
Section 179 is part of the IRS tax code designed to support small and medium-sized businesses. The tax benefit enables businesses to deduct the full purchase price of qualifying equipment. This is during the tax year in which your business purchases the equipment. This deduction encourages businesses to invest in all the necessary assets. And they do not have to stretch out the tax benefits over several years through traditional depreciation.
So, what qualifies for Section 179?
Equipment used for business more than 50% of the time can qualify for the Section 179 deduction. This includes manufacturing equipment, heavy machinery, and other tools used in business operations. For example 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.
“As a self-storage owner, you know you can save on your annual taxes by claiming various expenses. However, you may be overlooking other significant savings that can generate cash flow and help you pay for facility improvements. Just a little planning could give you access previously undiscovered capital.”
Inside Self-Storage
Why Relocatable Storage Units Qualify
Relocatable self-storage units are portable, so they can qualify as equipment under the Section 179 classification. Permanent structures require lengthy permitting and zoning processes. Relocatable units are movable. So, the setup is simple, and business owners can capitalize on immediate tax benefits. The units are financed through equipment leases rather than construction loans. This streamlines the entire acquisition process.
How Section 179 Works
With Section 179, self-storage operators can immediately deduct the full cost of their units from their gross income. This reduces their taxable income for the year. For the 2024 tax year, the deduction limit is set at $1,220,000, with a spending cap on equipment purchases at $3,050,000. This means that businesses can potentially write off up to $1.22 million worth of equipment in one year.
Bonus Depreciation in 2024
In addition to the Section 179 deduction, businesses can also take advantage of a 60% bonus depreciation for the 2024 tax year. This benefit is available even after the Section 179 limit is reached. So, it is ideal for facilities with larger equipment purchases.
For self-storage facility owners, understanding Section 179 is key. By investing in relocatable storage units, you may be able to take immediate tax deductions. Why not grow your business and improve your bottom line? Be sure to consult with a tax professional to understand how Section 179 applies to your business. And start making the most of this valuable tax benefit. For more detailed information, visit the official Section 179 website.
Also, here is a video about the Section 179 deduction: https://youtu.be/Wnb4L2UhClA?feature=shared
Boxwell manufactures relocatable self-storage units, portable containers, roll-up doors, and hallway systems for businesses worldwide. We look at our clients’ needs. Our design and development team creates renderings with materials, finishes, and branding options. Once approved, we manufacture storage units. We use galvanized rust-proof steel, three layers of paint protection, and innovative designs. This all ensures long-term, revenue-generating units. We work with vetted financial partners and delivery companies. Knowing the nuances of the industry, these partners can speed up the financing and coordination of delivery. Boxwell is your communication go-between, so you can relax while our team tracks the administrative details.
Our extensive reach encompasses storage facilities across various regions, spanning America, Australia, Canada, Europe, Ireland, Germany, the Middle East, the United Kingdom, and beyond. What sets Boxwell apart is our commitment to delivering fully customizable, exceptionally durable, and effortlessly movable storage solutions that meet the unique demands of every client. So, you can focus on running your operation! With a commitment to customer satisfaction, industry collaboration, and community engagement, Boxwell empowers storage facilities of all sizes to optimize their revenue streams.
Order your self-storage units now and enjoy peace of mind for the peak storm season ahead. Make sure your storage solutions can withstand the test of time and provide reliable service to your clients. Work with a Boxwell representative to decide your ideal unit mix, custom colors, door configurations, and more. Your Boxwell storage units will be shipped flat packed and assembled fast with just a few dozen nuts, bolts, and basic tools. You will be ready to rent them in no time! For more information on how Boxwell can support your storage business, visit boxwell.co or call (303) 317-5850 for more information.
