Deduction：A self-storage facility

Question: We have a client who works as a lawyer under a fixed-term contract. He keeps most of his professional library and office records in a self-storage facility, which he accesses occasionally for work. Can he claim the cost of the self-storage facility as a deduction against his employment income?

Answer: The ATO doesn't specifically list storage expenses as deductible in Taxation Ruling TR 95/9. Typically, they might be considered private expenses unless the taxpayer can prove they're for work purposes (i.e., for earning assessable income under s 8 of ITAA 1997). Unless the client is running a business, his office records are likely seen as personal.

To support a claim for the storage rental on his professional library, it would help if he:

1. Keeps a list of all items in storage to demonstrate their work-related nature, separating any private items.
2. Has documentation from his employer indicating the necessity of storing the library offsite but also the requirement or encouragement to consult it for work, along with records of such consultations.
3. If part of his salary is allocated as an allowance for storage, this can further support the claim (see Taxation Ruling IT2198).
4. Can provide an account from the storage facility provider for rent as evidence.

These steps can strengthen his case if the deduction is investigated.