Can I write off shed on taxes?

You do have to use it regularly and exclusively for your work. A shed you use exclusively to hold your carpentry tools is a valid write-off. A shed that holds carpentry tools plus all the gardening equipment you use at home?

smallbusiness.chron.com - The Tax Deduction for a Separate Structure Used for Business

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If you work from home and dedicate part of the house exclusively to business, you can claim a tax deduction. The write-off is also available for the business use of a detached garage, storage shed or other separate structure on your property. You have to use the structure exclusively for business if you want the deduction. Tip You can take a write-off for a separate structure on your property that you use exclusively and regularly for business. The deduction includes expenses tied to the structure, such as repairs and utilities, or you can take a straight dollar amount per square foot of business space.

Business Use of Your Home

Whether it's a home office, inventory storage or a meeting place for clients, you can claim a tax write-off for the business use of your home, according to the IRS. To take the deduction, you divide your home expenses by the space devoted to business. If 9 percent of your apartment is used as your home office, you deduct 9 percent of rent and utilities. Alternatively, you can multiply the square feet used for business by the IRS standard rate – currently $5 per square foot. This simpler approach often nets a smaller deduction. The IRS requires you to use the designated space regularly and exclusively for business to claim the write-off. Using your spare bedroom for business and nothing else is deductible; working in the living room your whole family uses is not. There are exceptions, though. For example, any space you use to store inventory regularly is deductible, even if you use it for personal purposes. If you're not using the workspace for storage, it should be either your primary place of business or a place you use regularly to meet with clients. An attorney with a downtown office who works evenings in part of the house doesn't qualify for a tax write-off. The home office isn't his primary place of business, even if he uses it exclusively for legal work. If he meets clients there, however, it might qualify. If, say, you claim $1,800 on your home business use and that puts your business $800 in the red, you can't take the full deduction. You can zero out your self-employment income with a home-business use write-off, but you can't turn it negative. Instead, you'd take that extra $800 and carry it over to apply to next year's taxes.

Business Use of Detached Garage

It's easier to claim a deduction for the business use of a detached garage, storage shed, barn or studio separate from the main house. You don't have to meet clients there or make it your primary place of business to take the deduction. You do have to use it regularly and exclusively for your work. A shed you use exclusively to hold your carpentry tools is a valid write-off. A shed that holds carpentry tools plus all the gardening equipment you use at home? Not so much.

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