Can I Write This Off?

Can I write off cloud storage for business files?

TL;DR

Yes, cloud storage for business files is generally deductible as a business expense.

Detailed Answer

Cloud storage expenses can be deducted as ordinary and necessary business expenses if they are used for storing business-related files. This deduction is applicable whether you are a freelancer, small business owner, or part of a larger corporation. However, if the storage is used for personal files, it is not deductible. For example, a freelance graphic designer can deduct the cost of cloud storage used to save client projects and business documents.

Where to Put It on the Tax Form

Schedule C, Line 27a for sole proprietors, or as a business expense on the appropriate line for corporations or partnerships.

Real World Example

A small marketing agency pays $100 per month for cloud storage to keep client files and marketing materials. They can deduct the $1,200 annual cost as a business expense.

Audit Risk & Documentation Tips

Maintain records of invoices or receipts for cloud storage services. Keep documentation showing how the storage is used for business purposes, such as file directories or usage logs. This can help substantiate the deduction if audited.

IRS Reference

IRS Publication 535, Business Expenses

Relevant Industries

FreelancersSmall BusinessIT ProfessionalsPhotographers

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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 7, 2025

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