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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Is income from a warehouse storage facility that stores items

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Is income from a warehouse storage facility that stores items for business' subject to SE tax? Some items leave in days, some leave in weeks, some (roughly 10%) are there for a year, it's a one time fee, charged when the units are received by the warehouse.


Megan C :

Thank you for your question, and thanks for using

Megan C :

Unfortunately, income from warehousing is subject to self employment taxes. You can verify this using this link:

Megan C :

Other Income and Losses Included in Net Earnings From Self-Employment

  1. Rental income from a farm if, as landlord, you materially participated in the production or management of the production of farm products on this land. This income is farm earnings. To determine whether you materially participated in farm management or production, do not consider the activities of any agent who acted for you. The material participation tests for landlords are explained in chapter 12 of Pub. 225.

  2. Cash or a payment-in-kind from the Department of Agriculture for participating in a land diversion program.

  3. Payments for the use of rooms or other space when you also provided substantial services for the convenience of your tenants. Examples are hotel rooms, boarding houses, tourist camps or homes, trailer parks, parking lots, warehouses, and storage garages.

Megan C :

The above is from the IRS publication that I linked to. It specifically states that payments for the use of a warehouse are subject to self employment taxes.

Megan C :

I'm truly sorry if you expected otherwise.

Megan C :

Is there anything else that I can assist you with today?

Megan C :

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