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UNIQUE TAX-DEDUCTIBLE INCOME
Looking for extra tax breaks this year? Who isn't?!
It's no secret; tax is simply a burden we bear out of patriotism and not choice.
But, we still look to save money where we can.
Get this; most homeowners spend thousands of dollars each year sprucing their lawns.
So, are any of those lawn care expenses tax-deductible? Well, yes, sometimes, at least.
Let's take a look at what lawn care and landscaping expenses are tax-deductible.
The Quick Answer: Is Lawn Care Tax Deductible?
SPOILER ALERT! In short, for most homeowners, the answer is no. However, you can claim lawn care as a tax deduction if you have a home business and the lawn care serves the business's operation. Or if the person you hire to mow the lawn is an employee of your company.
If you really want to save money, you may want to maintain your lawn yourself, it can be good exercise!
Want to learn more? Then keep reading!
Like Everything Else: The Price of Lawn Care is Increasing:
Sadly, gone are the days you would pay your neighbor's child to mow your lawn for just five bucks.
Worse still, homeowners associations have gone to the extent of setting lawn standards to be abided by all homeowners.
So it's no wonder when homeowners constantly inquire whether they can get any tax reliefs from the money they spend on their lawns.
And you aren't alone in wanting to cut your expenses. So let's take a look at what types of lawn care and landscaping expenses you can write off.
While you should consult with an accountant, below is the general consensus of how lawn care expenses are treated.
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What lawn care expenses are tax-deductible?
Look, the expenses we make need to meet certain criteria before being legally declared as tax-deductible,
For example, personal expenses are usually classified as taxable income because the government usually deducts personal relief from the total tax due.
Yet, on the other hand, expenses that are made with the intention of creating income are tax-deductible.
The IRS guidelines clearly state, and I quote,
"…you can deduct various federal, state, local and foreign taxes directly attributable to your trade or business as business expenses."
Therefore you can only deduct the sum of money you spend to care for your lawn if your property is being used to bring in rental income, or as a home office.
Even if you use the property partly for personal use and partly for rental income or home office. You are legally allowed to claim the appropriate percentage of the sum you spend on your lawn. Depending on the proportion of the property being used for business.
To Be Deductible: Your Lawn Needs to Be "Useful in Business Operations"
The lawn also needs to be helpful in business operations. This is the other key criteria that makes the costs incurred when taking care of your lawn deductible.
Should the IRS make visits to your premises. You should be able to prove that the lawn you spend so much money to maintain is truly essential to the operations of your business.
For instance, you may have to show that the lawn is used in holding business activities like morning meetings or team-building exercises. Or perhaps your lawn is a selling point of your rental property.
You can Deduct if the Person Doing Lawn Care is An "Employee"
Alternatively, you are legally allowed to deduct the costs if you treat the person you have hired to mow your lawn as an employee.
But with the costs of legally hiring someone being so high with expenses like Workmans Comp., this will likely end up costing you more than it's worth if you are simply doing so to save a few dollars on taxes.
If you treat the guy who mows your lawn as any other employee, then his wages become tax-deductible on your part, and the tax burden shifts to them.
For example, if you are the owner of a lawn care business and you have your employees cut your lawn, you can deduct that cost as a business expense.
As the employer, your only responsibility would be to withhold the appropriate funds for your household employees and submit the Wage and Tax Statement (W-2 form).
Which is dully filled by both you and your employee at the end of the tax year.
What lawn care services are tax-deductible?
Eligible lawn maintenance services for tax deductions, assuming they meet specific exceptions, include routine upkeep tasks such as:
- Lawn mowing
- Trimming and edging
- Weed removal
- Lawn fertilization
- Soil aeration
- Landscaping design (if directly related to business use)
Note: Decorative landscaping elements like fountains or statues are generally not deductible.
Frequently Asked Questions
Can I Deduct Lawn Care Expenses on My Personal Property?
Unfortunately, as a homeowner, you cannot deduct lawn care expenses for personal property. These costs are considered personal expenses and are not eligible for tax deductions.
Are lawn care expenses deductible for rental properties?
Yes, lawn care expenses are deductible for rental properties as they are considered necessary for property maintenance and business operations.
What types of lawn care expenses are considered deductible for a rental property?
Deductible lawn care expenses for rental properties include mowing, trimming, weeding, and landscaping.
What paperwork for employee lawn care deduction?
If deducting lawn care expenses through an employee, you must maintain proper employment records, including a W-2 form, and adhere to legal employment practices.
How much lawn care can I deduct from my taxes?
The deductible amount for lawn maintenance on your taxes varies with the proportion of your property utilized for business purposes. If there's a specific area in your home designated as an office, calculating this is simple. However, if the business usage of your property isn't as defined, you'll need to determine the percentage of deduction by considering aspects such as the size of the space or the amount of time spent working in various parts of your home.
Can I write off my lawn care costs?
The eligibility for deducting lawn care expenses hinges on the purpose of the lawn's usage. If your lawn serves purely for personal leisure, generally, you cannot claim these costs. However, if the lawn plays a crucial role in your business activities, you might be eligible for certain deductions.
TL;DR: Can I Deduct Lawn Care Expenses on My Taxes?
Usually, no. But there are some exceptions.
Here's a quick rundown:
Homeowners: Sorry, lawn care is not tax-deductible for you.
Home Businesses: If you use your lawn for business purposes (like meetings or as a home office), you may be able to deduct some expenses.
Rental Properties: Lawn care expenses for rental properties can be deducted as business expenses.
Employees: If you hire someone to do your lawn care and treat them as an employee, their wages can be deducted as a business expense.
Tax Deductible Lawn Care Services At The End of The Day
For most homeowners, despite it adding value to your property, lawn care is not tax-deductible.
However, if you run a business out of your home or employ the person who cuts your lawn, you can deduct those costs from your taxes.
So there are instances when lawn care can be deducted. But unlike other renovations you may do for your home such as those that can cut energy costs; lawn care can not be deducted as an expense on taxes by the average homeowner.
