Can you deduct landscaping from taxes

While the field has great potential, especially in certain areas, expenses can often be high and prohibitive for those just getting started. This is where deductions come into place. It is important to have a basic understanding of the tax system in order to minimize your payments and therefore earn more money. In this post we will discuss the ins and outs of landscaping tax deductions, to make sure that you are maximizing your earning potential.

As a small business owner, you know how important it is to have accurate bookkeeping and accounting services. You must record all income that comes into your business as well as keep track of all of the money that comes out. The reasons for tracking your income are fairly obvious and clear. The tax authorities require each individual and business to submit tax returns and pay taxes appropriately according to their income. This can be a bit more complicated as a small business owner, as opposed to an employee, which is why it is always recommended to consult a trusted accountant.

You will also have to pay self-employment tax social security and medicare and potentially other necessary taxes. However, in order to offset some of the tax burdens, as a small business owner, you have many tax deductions that will lower the amount you have to pay. What does this mean? Every business related expense can be deducted from your income. As a result, you will owe fewer taxes, as your total profit will be lower.

While each business should check with a CPA about its specific deductions, there are many common landscape business tax deductions. In this section, we will discuss the most common lawn care and landscaping tax deductions. Self-employment tax can be a frustrating expense for small business owners. Paying to have the lawn mowed every week doesn't count. The IRS specifically lists landscaping, installing a sprinkler system or building a walkway or driveway as outdoor improvements that adjust your basis.

Be careful, though -- if you pay for landscaping, tear it out and redo everything, the first landscaping no longer affects your basis. If you're selling your personal home, the landscaping adjustment may not matter much. Landscaping is more likely to make a difference if you sell a vacation or second home.

Those properties don't get the main-home exemption. But keep in mind, those necessities are different than improvements which are landscaping expenses incurred to add value to the home. If you make changes to avoid the depreciation of the property, than you can file it under the special depreciation or section depreciation on your taxes.

While your tax specialist can help you understand if your landscaping costs are able to be expensed, the common rule of thumb is that if the expenses go towards a business or income, they are more likely helpful at tax time. The Internal Revenue Service will allow landscaping as a tax deduction or a depreciable expense if you meet the qualifications. Your name must be on the property title as owner. Renters may not deduct landscaping costs even if they pay for them.

If you work from home as a sole proprietor and meet clients at your home, a portion of the cost of landscaping is deductible as a business expense.