Rent Is Tax Deductible for Business on Schedule C Lines 20a and 20b
Schedule C is the tax form you fill out for your business. You put rent for a shop, an office, or a storage unit on line 20b, and rent for equipment, tools, or a truck on line 20a. The form calls both lines "Rent or lease." You write off the full rent for what your business uses.
What goes on lines 20a and 20b, "Rent or lease"
- An office, a shop, a studio, or a warehouse, on line 20b
- A booth or chair you rent at a salon or market, on line 20b
- A storage unit for your business, on line 20b
- Tools, machines, or equipment you rent for a job, on line 20a
- A truck or trailer you rent for your business, on line 20a
What goes on a different line
- Rent for your home, when you have a home office Line 30, home office
- A rental car on an overnight work trip Line 24a, Travel
- Electric and water bills for the space Line 25, Utilities
- Rent-to-own payments for something you will own Not line 20. Ask your tax preparer
Updated by Doug, owner of Shoeboxed. Rules from the IRS Schedule C instructions.
Costs that go on a different line
Rent for your home goes with your home office on line 30
If you rent your home and use part of it as a home office, you can write off the office's share of the rent. Your tax preparer can figure a home office two ways:
- The long way, on IRS Form 8829, adds up your real home bills. If your office takes up 10% of your home, 10% of your rent goes on line 30.
- The simple way lets you write off $5 for each square foot of office. The $5 already includes your rent, so you don't add it.
See what yours is worth with our home office deduction calculator.
A rental car on an overnight work trip goes on line 24a
A car you rent while you travel overnight for work goes on line 24a, "Travel," with your hotel and flights.
Electric and water bills for the space go on line 25
When you pay the electric or water company yourself for your shop or office, the bills go on line 25, "Utilities." See which utilities go on line 25.
Rent-to-own payments are not rent
If your payments will make you the owner, the IRS counts them as buying the item, not renting it. They stay off line 20, and your tax preparer writes off the item as a purchase, not as rent.
Renting from a family member? Pay the same rent a stranger would
You can write off rent you pay a relative, like a parent who owns your shop, when the rent is fair. The IRS says rent to a family member is fair when it is the same amount you would pay a stranger for the same space.
Where 5 common rent payments go on Schedule C
Say you run a small painting business, and you have no home office. Here is the rent you paid in 2026. The amounts are an example.
| What you paid in 2026 | Cost | Where it goes on Schedule C |
|---|---|---|
| A storage unit for ladders and paint | $1,800 | Line 20b, Rent or lease, other business property |
| A small office | $9,600 | Line 20b, Rent or lease, other business property |
| A paint sprayer for one big job | $400 | Line 20a, Rent or lease, vehicles, machinery, and equipment |
| A scissor lift for two days | $600 | Line 20a, Rent or lease, vehicles, machinery, and equipment |
| Rent on your apartment | $18,000 | Not a write-off (you have no home office) |
Line 20b gets $11,400 for the storage unit and the office. Line 20a gets $1,000 for the sprayer and the lift. The apartment rent stays off Schedule C.
U-Haul receipts can go on line 20a or line 20b, so sort each one
143 Shoeboxed customers had a U-Haul receipt from November 2025 to October 2026, more than any other rental company we counted. 93 had one from a storage unit company, and 77 from an equipment rental company.
A U-Haul truck you rent for your business goes on line 20a. A U-Haul storage unit goes on line 20b. Type what you rented, like "truck rental" or "storage unit," in the box near the top of this page.
Shoeboxed rental receipts, November 2025 to October 2026
1,214
rental receipts
289
Shoeboxed customers who saved them
$199
for a typical receipt. Half cost more, and half cost less.
A typical receipt from each rental company or group
A typical U-Haul receipt is $88, a storage unit $215, and an equipment rental $361.
- Equipment and tool rental companies $361
- Storage unit companies $215
- U-Haul $88
The rental companies with the most Shoeboxed customers
| Rental company | Customers | Receipts | Typical receipt | Half of receipts cost between |
|---|---|---|---|---|
| U-Haul | 143 | 287 | $88 | $40 and $180 |
| Storage unit companies | 93 | 611 | $215 | $124 and $379 |
| Equipment and tool rental companies | 77 | 316 | $361 | $136 and $1,366 |
Shoeboxed counted the receipts customers uploaded from November 1, 2025, to October 31, 2026, from U-Haul, from storage unit companies, like Extra Space Storage, Public Storage, and CubeSmart, and from equipment rental companies, like Sunbelt Rentals, United Rentals, and Herc Rentals. We matched each one by the name on the receipt, in any Shoeboxed category. Other rental companies are left out. Some receipts showed no total, so the dollar amounts leave those out.
Keep your lease and each rent receipt for 3 years after you file
The IRS wants a record of each write-off, and in most cases you keep it for 3 years after you file. For rent, keep the lease and proof of each payment, like a canceled check or a bank statement.
Snap your lease and the paper receipts with the Shoeboxed app, and forward the ones that come by email. Our software reads who you paid, the date, and the total, and we keep each one for as long as you have an account. When tax time comes, export the list or invite your bookkeeper or tax preparer in to see it.
Every Shoeboxed plan comes with a 30-day, 100% money-back guarantee. See the plans.
6 common questions about rent on Schedule C
Yes. Rent for business space, like an office, a shop, a booth, or a storage unit, goes on Schedule C line 20b. Rent for vehicles, machines, and equipment goes on line 20a. You write off the full rent for what your business uses. Rent for your home goes with a home office on line 30.
Keep every receipt for your business in one place with Shoeboxed
Snap them with the app, forward the ones that come by email, or mail the paper ones to us in a Magic Envelope, and we scan them. We keep them all, ready for your accountant.
See how Shoeboxed keeps your receipts