Can I write off the shed in my backyard as storage space for tools for my construction business? How would that be done?
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A storage unit for your business is required to be reasonable and necessary expense for your business to be written of as a rent expense deduction.
If you have a separate shed on your property used "exclusively & regularly" for your business, you can take a business deduction for it.
Please remember to maintain accurate records of the storage costs & items that are within the shed, such as receipts.
If your shed is a regarded as a permanent attachment to your home, then it will be considered an improvement to your home subject to depreciation.
A structure in considered permanent if it is an external attachment to your home and it is UNMOVABLE. Some examples include garages, barns, and sheds that are CEMENTED to where it stands.
You would make a deduction for your shed in the backyard the same way you would if you were utilizing a room in your home as Home Office Space. Here are the steps:
For full disclosure of the HOW TO you may read in IRS.gov
https://www.irs.gov/newsroom/how-small-business-owners-can-deduct-their-home-office-from-their-taxes
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