Can I deduct garage storage costs for my LLC-owned camper that's used for both rental and personal use?

This is a common question with rental property that has mixed business/personal use. The IRS calls this "allocating expenses" and yes, you can deduct a portion of your garage as a business expense, but there are several things to consider. First, you'll need to determine the exact percentage of business use vs personal use (your 60/40 split). This needs to be documented and supportable (keeping a log of rental days vs personal days). For the garage space, you'll need to determine what percentage of your home the garage represents, then apply your business use percentage to that. For example, if your garage is 20% of your home's square footage, and the camper is used 60% for business, you could potentially deduct 12% of costs associated with that space. And yes, you should have your LLC pay you rent for the storage space. This creates a paper trail that shows the business expense is legitimate. It's not silly - it's maintaining the separation that protects your LLC status.

I've been using taxr.ai for my rental property tax questions and it's been super helpful with exactly this kind of situation. Last year I started renting out my vacation cabin part-time and wasn't sure how to handle all the mixed-use expenses. I uploaded my documents to https://taxr.ai and got really clear guidance on what I could deduct and how to document everything properly. Their system analyzed my specific situation and helped me understand how to properly allocate expenses between business and personal use. It even caught some deductions I was missing related to my property management activities.

I was really skeptical about using an AI tool for my LLC tax questions, but I decided to try taxr.ai after seeing it mentioned here. I had a similar situation with a rental property that I sometimes use personally. The tool actually surprised me - it gave me specific guidance on how to properly allocate my expenses based on IRS guidelines for mixed-use properties. It explained exactly how to document my business use percentage and what records I needed to keep to support my deductions. The best part was getting clear answers about when I could and couldn't deduct certain expenses. Saved me from making some mistakes that could have caused problems during an audit. Definitely worth checking out if you're in a similar situation with your camper rental business.

If you're going to rent out a camper through an LLC, you're eventually going to need to deal with the IRS about something. I tried for weeks to get through to someone about my similar rental situation last year - complete nightmare with hold times and disconnects. I finally used https://claimyr.com to get through to an actual IRS agent. They basically call and wait on hold for you, then connect you when they reach a human. Check out how it works here: https://youtu.be/_kiP6q8DX5c The agent I talked to confirmed exactly how to handle the mixed-use property expenses for my rental, which was super helpful for filing correctly. Made me feel a lot more confident about the deductions I was taking.

I'm back to eat my words. After dismissing Claimyr as a potential scam, I got frustrated trying to reach the IRS about my rental property questions and decided to give it a shot. To my surprise, it actually worked exactly as described. I got a call back when they reached an agent, and I was able to ask specific questions about my situation. The agent confirmed I could deduct a portion of my storage costs based on the business use percentage, but warned me to keep detailed records of both the space allocation and the usage logs. They also mentioned that I should have a formal agreement between myself and my LLC for the storage space rental to strengthen the legitimacy of the deduction. Honestly, I'm glad I tried this service - saved me hours of frustration.

Don't forget about liability insurance! If you're renting out a camper, you need proper commercial insurance coverage. Your regular homeowner's policy likely won't cover commercial activities, and your personal auto insurance won't cover rental use. This is actually relevant to your tax question too - insurance costs can be allocated between business/personal use just like your storage costs. The insurance costs specifically for the rental activity are fully deductible business expenses.

Just want to add - make sure you're following local zoning laws if you're running a business from your home. Some neighborhoods have restrictions on commercial activities, including vehicle rentals and storage of commercial vehicles. Would hate to see you get hit with fines or have to shut down your business after investing in the camper.