If you’re a self-storage owner, January comes and goes fast.
You’re getting back into the swing of things. Rent increases are rolling. Maybe you’re reviewing year-end numbers. And then—somewhere in late January or early February—it hits you:
“Oh right. Taxes.”
This is the window where good planning happens. Not in April. Not when your CPA is buried and everyone’s scrambling. Right now—after January, before deadlines start stacking up.
Because once April 15 shows up, most options are already off the table.
This Is the Planning Zone (Not the Panic Zone)
There are really two tax seasons:
Most owners accidentally skip the first one.
If you wait until April, you’re mostly just reporting what already happened. If you start thinking about it now, you still have time to ask better questions, revisit decisions, and make sure you’re not leaving money on the table.
Especially in self-storage—where small moves add up fast.
Cost Segregation: Still Worth Talking About (But Not Automatically)
Cost segregation still comes up constantly in storage conversations—and for good reason. It’s been a powerful tool for improving cash flow.
But here’s the honest version:
If you bought, expanded, or placed a facility into service in the last few years, this is the moment to revisit it—not assume it’s already been optimized.
The mistake we see? Owners assume it’s either “done” or “not worth it” without actually re-running the numbers under today’s rules.
Expansions, Upgrades, and Improvements: Did You Catch All of Them?
Self-storage owners are constantly improving properties:
A lot of these costs get lumped together or misclassified—and once you file, it’s harder to fix.
Now is the time to slow down and make sure:
This is especially important if you expanded last year and just moved on to the next project without looking back.
Thinking About Selling or Exchanging? This Is When That Conversation Starts
Even if you’re not selling this year, tax season is when future exit strategies start to show up on paper.
Questions worth asking now:
Sometimes the smartest move isn’t deferring taxes forever. Sometimes it’s paying them intentionally and buying flexibility.
You don’t want to figure that out in escrow.
Entity Structure: It Worked Then—Does It Still Work Now?
A structure that made sense when you owned one facility doesn’t always make sense when you own three… or ten.
ax season is often when owners realize:
These aren’t “April problems.” They’re February conversations that prevent future headaches.
The Big Miss: Not Using Tax Season to Plan Forward
The biggest missed opportunity we see is owners treating taxes like a rearview mirror.
The better question is:
“What am I planning to do next—and how should my tax strategy support that?”
Refinancing. Expanding. Selling. Holding. Bringing in partners.
Those moves should be talking to your tax strategy—not working against it.
Final Thought
If January is about getting back into business mode, February and March are about being proactive.
This is when you still have time to plan. To ask questions. To pressure-test assumptions. To make sure your tax strategy matches where your portfolio is actually headed.
April 15 is a deadline.
This moment right now? That’s leverage.
If you're thinking of holding, refinancing or an exit down the road and would like to talk through your property, we're here to help. Contact us here
Important Disclaimer
This article is for informational purposes only. We are not tax advisors, CPAs, or legal professionals. Every self-storage portfolio is different, and tax strategies vary based on individual circumstances. Always consult with a qualified tax professional before making any tax-related decisions.
