Tax Benefits of Commercial Portable Storage Containers

Did you know investing in portable storage containers for your business can benefit you on your tax return? It’s true—portable storage containers are eligible for tax write-offs under Section 179. Especially for small and medium-sized businesses, this can result in significant immediate tax benefits, allowing these businesses to enjoy the perks of portable storage units while writing off the price of this purchase.  

With so many excellent commercial uses for these storage containers, this tax benefit can be incredibly helpful for a variety of businesses. Learn more about this tax deduction and how to obtain it in this guide. 

What is Section 179 Tax Deduction?

First, let’s break down what the Section 179 tax deduction is. The Section 179 tax deduction allows businesses to deduct the full purchase price of qualifying equipment and software purchased or financed during the tax year, rather than depreciating the cost over time. Because you can move portable units, they count as equipment for your business. This deduction exists with the intention to encourage small and medium-sized businesses to invest in themselves by making it more affordable to buy necessary equipment.  

For 2024, the maximum deduction is $1,160,000, with a phase-out threshold of $4,050,000. The phase-out threshold is the gradual reduction of a tax credit that a business is eligible for as its income approaches the upper limit. The deduction applies to both new and used equipment, as long as it is used for business purposes more than 50% of the time.  

This benefit is particularly valuable for small and medium-sized businesses looking to reduce their tax liability while investing in their growth. In simple terms, businesses can write off the cost of their portable storage units on their tax returns. 

Steps to Take to Receive Tax Benefits for Portable Storage Units

Now that we’ve taken a closer look at the details of the Section 179 tax deduction, we can dive into the steps you need to take to receive the tax benefits for portable storage containers. The following details will provide valuable guidance about this process. 

• Purchase Portable Storage Containers: The first step in the process is to buy portable storage containers that will be used primarily for business operations. These purposes can include storing equipment, inventory, or other business-related items. 
• Ensure The Units Qualify: To qualify for the Section 179 deduction, the containers must be tangible personal property used more than 50% of the time for business purposes. They should also be used within the year they are purchased. By meeting these qualifications, you can ensure you’re able to obtain the deduction. 
• Deduct the Full Purchase Price: Under Section 179, you can deduct the full purchase price of the containers in the year they are put into service, rather than depreciating the cost over multiple years. This can provide significant tax savings for your business. 
• Stay Within Limits: Be mindful of the annual deduction limit ($1,160,000 for 2024) and the phase-out threshold ($4,050,000). If your total equipment purchases exceed the threshold, the deduction amount starts to phase out. Being mindful of these limits will prevent any unforeseen issues. 
• Documentation: Keep detailed records of the purchase, including invoices, payment receipts, and how the containers are being used in your business. This documentation is essential for substantiating the deduction if audited. 
• Consult a Tax Professional: Tax laws can be complex, so it’s wise to consult with a tax professional to ensure you’re maximizing your Section 179 deduction while staying compliant with IRS regulations. This can make the entire process much less complicated.
  

Who Should Utilize the Section 179 Tax Deduction?

A wide variety of businesses can take advantage of the Section 179 tax deduction to enjoy the benefits of high-quality portable storage containers. Let’s run through a few of the best candidates for this tax break. 

• Small and Medium-Sized Businesses: First and foremost, small and medium-sized businesses in general can use this tax deduction to their advantage for portable storage containers. This can make a huge difference financially for these companies, as they might not otherwise have the budget for these valuable storage units. However, with this tax break, they can obtain these containers much more easily. Especially when businesses purchase multiple containers at once, these benefits can be maximized. 
• Construction Companies: Of all small businesses, construction companies may be the top candidates for utilizing portable storage containers. These storage units have endless uses on construction sites, and their portable nature means they can easily be moved to different sites as needed. Construction companies can use storage containers to store equipment and materials, even outfitting them with shelving or racks for optimal organization. Additionally, they can be used as office spaces.  
• Manufacturers: In the manufacturing sector, portable storage units can serve as convenient tools for storing a wide variety of materials and inventory. With Section 179, manufacturers can also use the tax deduction for many of the other pieces of equipment involved in their business. 
• Retailers and Wholesalers: For retailers and wholesalers, finding space for their inventory can be a difficult task. Rather than financially committing to a larger warehouse space to suit their storage needs, opting for a portable storage container can serve as a more affordable option. 
• Agricultural Businesses: Farming and agricultural businesses utilize various pieces of equipment to achieve their goals. Portable storage containers can provide secure storage space for this equipment, and both the equipment and the storage units can be written off as a tax deduction under Section 179.
  

Enjoy the Benefits of Portable Storage Containers

By taking advantage of this rewarding tax deduction, businesses can not only enjoy the benefits of portable storage containers but also experience significant tax write-offs. Especially for small and medium-sized businesses, this can make a major difference in their day-to-day operations without being as difficult to budget for.  

Interested in sourcing high-quality storage containers from a reputable source and enjoying the perks of the Section 179 tax deduction? Trust Container Technology with all of your portable storage container needs in Atlanta and beyond.  

Container Technology has been the leader in Atlanta’s shipping and storage container industry since 1988, and we offer a wide array of storage container sizes and specifications to suit various needs. Need customizations? We also offer many modification options to accommodate your business’s unique needs. Request a free quote online or call us today and learn more about our highly-rated containers for reasonable rates!