With 2015 drawing to a close, many storage auction hunters are getting their financial documents in order for the upcoming tax season. While no one enjoys paying Uncle Sam, it’s part of the territory that comes with running your own business. The good news is that you can often deduct certain business-related expenses, meaning you don’t have to pay tax on that income. So, what are some of the expenses that you can write off as a storage auction hunter?
According to an article published by the HuffingtonPost, the average American spends more than $2,000 per year on gas. If you are in the buy-sell storage auction business, however, you can deduct some — not all — gas expenses from your taxes. Generally speaking, you are allowed to deduct the gas expenses associated with your trips to and from the storage facilities, as well as other trips associated with your business. Keep all your receipts to show your accountant.
Tools and Equipment
Did you purchase any new tools or equipment for your storage auction business this year? Whether it’s a new pair of gloves, handtruck, broom and dustpan, etc., these are all expenses that can be deducted from your taxes.
As a storage auction hunter, you’ll be making plenty of trips to the dump. When you score a unit that contains lots of junk, it’s unlikely that you’ll want to bring this junk home, so you take it to the dump. But many dumps charge upwards of $20 or more just for using their facilities. Rather than footing the bill for this expense, why not write it off on your taxes? Because it’s a business-related expense, Uncle Sam will allow you to write it off. Again, just remember to keep records of your dump expenses, because you’ll have to prove that you spent money on it if you are audited.
Truck or Van Rental
It’s not uncommon for storage auction hunters to rent trucks or vans to haul off large items. Assuming the rental is used strictly for your storage auction business, you can write it off on your taxes.
Hopefully, this will give you a better idea of which expenses are deductible on your taxes. Of course, we recommended consulting with a professional tax accountant for more information.