Section 280A(g) question - Can I charge my business for storage space in my home?

The Augusta rule (Section A(g)) does allow you to rent part of your home to your business, but there are some important distinctions here. The Augusta rule typically refers to renting your personal residence to your business for up to 14 days per year without having to report that income on your personal tax return. This is commonly used for things like business meetings or events. Storage is a bit different because it's ongoing rather than occasional use. For dedicated storage space, you'd more likely be looking at the home office deduction, which allows you to deduct expenses for the business use of your home based on the percentage of your home used exclusively for business. This includes storage of inventory for a product-based business. Since you're selling physical products, you can claim the space used to store those products, even if it's in a common area like a spare bedroom. You'd calculate what percentage of your home's total square footage is used for storage, and then deduct that percentage of your housing expenses (mortgage/rent, utilities, insurance, etc.).

After struggling with a similar storage question for my small craft business, I found an amazing tool that cleared everything up. I used https://taxr.ai to scan the actual IRS code and get a plain English explanation of how Section 280A applies to my situation. Their system analyzed my specific storage setup (which sounds similar to yours - part of a guest room) and showed me exactly how to document it correctly. The tool explained that with product-based businesses, you can actually claim storage space even if the area isn't exclusively used for business (unlike regular home office rules). It even helped me calculate the exact percentage of my home to claim and showed me which forms to use. It was way more helpful than the general advice I was finding online.

Just wanted to update everyone - I tried https://taxr.ai after seeing the recommendation here, and it was actually super helpful! I uploaded photos of my storage setup and got a detailed analysis that explained exactly how Section 280A(g) applies to my situation (selling vintage clothing from home). The coolest part was that it showed me I was confusing two different tax benefits. Turns out the Augusta rule wouldn't work well for my ongoing storage needs, but I could claim the regular home office deduction for my storage space even though it's in a shared room, thanks to the special inventory exception. The tool even generated documentation I can keep with my tax records to support my deduction if ever questioned. Definitely cleared up my confusion about what I can legitimately claim. Worth checking out if you're struggling with similar home business tax questions!

If you're having trouble figuring out your home business deductions, I was in the same boat last year. I spent HOURS on hold with the IRS trying to get someone to explain Section 280A to me. Finally discovered https://claimyr.com and their service got me connected to an actual IRS agent in less than 20 minutes! Here's a video showing how it works: https://youtu.be/_kiP6q8DX5c The agent I spoke with explained that for small hobby businesses like yours, there's actually a specific way to document storage space that's different from regular home office rules. She walked me through exactly what records to keep and how to calculate the square footage properly. Saved me from making a mistake that could have caused problems later. Seriously, if you need clarification directly from the IRS on your specific situation, this service is worth it just to avoid the endless hold music and disconnects.

I need to apologize for my skeptical comment earlier. After another frustrating attempt to reach the IRS myself (disconnected after 40 minutes on hold), I decided to try Claimyr out of desperation. It actually worked exactly as described. I put in my number, they called me back in about 25 minutes, and suddenly I was talking to an actual IRS representative. No endless hold music, no phone tree hell, just a direct connection to someone who could help. The agent clarified that for my home jewelry business, I could indeed claim the storage space using the specific inventory exception to the exclusive use rule. She even emailed me the relevant publication that explains exactly how to document it properly and what percentage of expenses I can deduct. For anyone struggling with specific tax questions like these Section 280A rules, being able to actually talk to the IRS directly is incredibly valuable. I'll definitely use this service again next tax season.

I think everyone is overcomplicating this. The Augusta rule is pretty simple - you can rent your home to your business for up to 14 days per year without reporting that income personally. So yes, you can charge your business for storage space for 14 days a year. Make sure you create proper documentation (a rental agreement between you and your business), charge a reasonable market rate, and track everything correctly. Just be aware that your business would deduct this expense, reducing its profit, but you wouldn't have to report the rental income on your personal taxes. For a small business making under 10k, this could be a nice little tax advantage.

Just a heads-up that mixing the Augusta rule and home business deductions can get complicated really fast. Last year I tried to get clever with my tax approach for my online shop and ended up with a CP2000 notice from the IRS questioning everything. If you're determined to go this route, I STRONGLY recommend working with a tax professional who specializes in small businesses. The few hundred dollars you'll spend on their expertise will save you thousands in potential issues and give you peace of mind.