News

Self-storage kiosks qualify for tax break

October 10, 2011

INSOMNIAC self-storage kiosks qualify for the IRS Tax Code Section 179 tax deduction, effectively reducing the cost of a kiosk by 35 percent, according to the manufacturer, OpenTech Alliance Inc. Section 179 allows businesses to deduct the full purchase price of qualifying equipment or software purchased or financed during the current tax year.

"Section 179 is a great deal for self-storage operators considering a self-service kiosk, but they have to order their kiosk soon," OpenTech President Robert Chiti said on the company's site. "To qualify for the deduction in 2011, the kiosk must be in operation by the end of the year." More information can be found here.

OpenTech provided an example (see below chart) of tax savings in relation to itsINSOMNIAC 770 kiosk, which costs $15,500. The calculator presents a potential tax scenario based on typical assumptions that may not apply to every self-storage business. The indicated tax treatment applies only to transactions deemed to reflect a purchase of the equipment or a capitalized lease purchase transaction. OpenTech advises that interested parties consult their tax adviser to determine the tax ramifications of acquiring equipment or software for their business.

Phoenix-based OpenTech is the developer of the INSOMNIAC line of self-storage kiosks, now with seven models. The company also offers the INSOMNIAC Live! call center and the INSOMNIAC Self Storage Network for online storage reservations and rentals.

Read more stories about governmentand kiosks.