Safe Deposit Box Rent Tax Deductible?

A few years ago we used to tell customers that safe deposit rental was an even better deal for them because it was tax deductible.

Then the government changed their minds and decided that safe deposit box rental wasn't tax deductible after all. And we dropped that benefit from our sales appeal explanation.

Now you may find an accountant that will know that the rent paid for a safe deposit box is tax deductible, but it is subject to what the IRS terms the "2% floor."

What that means is you can add together expenses for such things as education expenses that are job-related, tax preparation costs, investment expenses, professional or union membership dues, business books and magazines, IRA or Keogh custodian fees, business equipment depreciation, and the cost of a safe-deposit box.

Any total amount over 2% of a taxpayer's Adjusted Gross Income can be deducted under miscellaneous deductions-returning our safe deposit box rental to the "better deal" status.

Copyright © 1991 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 2, No. 2, 3/91