Cloud Storage & Backup
Dropbox, Google Drive, iCloud, and backup services for content files.
Tax Form
Schedule C, Line 18
Estimated Savings
$50-300/year
How It Works
Cloud storage subscriptions used to store and backup your content files are deductible business expenses. This includes services like Dropbox, Google Drive, iCloud, OneDrive, Backblaze, and other cloud storage or backup solutions. Video files require significant storage, making this a common creator expense.
IRS Rules & Requirements
- Storage must be used primarily for business files
- Subscription costs are deducted in the year paid
- If used for both personal and business, deduct business portion only
- Backup services and external storage solutions qualify
- Keep records of subscriptions and business use
Real Examples
Dropbox Plus at $120/year (100% business use) = fully deductible
Google One 2TB at $100/year (80% business use) = $80 deductible
Backblaze backup at $70/year = fully deductible
Common Mistakes to Avoid
- Not deducting cloud storage as a business expense
- Deducting 100% when also used for personal files
- Forgetting about backup service subscriptions
Pro Tip
If you use a storage service for both personal photos and business content, estimate the business percentage based on storage used for each purpose.
Related Deductions
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