Are Your Lawn Care Service Tax Deductible in PA & NJ?
It’s officially springtime and that means flowers are budding, temperatures are rising, and its tax season! While making plans to care for your lawn this year, you might be wondering if professional lawn care services are tax deductible. And since improving the lawn is one of the most cost-effective ways to increase property value, the answer might help determine how you allocate your green grass funds.
So, Is Lawn Care Tax Deductible? That Depends…
For Your Primary Residence
Hiring a lawn care professional is a personal choice. You take pride in maintaining the overall appearance of your home. And while that may be a priority for you, it doesn’t make it tax deductible.
For Your Rental Property
In this case, the home and property are considered a business if you are claiming income from rent money. Therefore, lawn care services are a tax-deductible business expense. Even if you use the property partly for personal use and partly for rental income, you are legally allowed to claim the appropriate percentage as a deduction.
For Your Business
Lawn care is tax deductible for a business. A well-groomed exterior can attract customers and help your business thrive. If there is an IRS audit, they will want to see that the expenses claimed were made with the intention of creating or contributing to income and are truly essential to the operations of your business.
For Your Business You Run from Home
If your house is also where you conduct your business, you can write off part of your lawn care services. For example, if you use 10% of your home for business, you can write off 10% of your lawn care expenses. If the IRS visits, you will need to show that your beautiful yard is actually essential to your operations. For instance, it is used for business activities like holding meetings or team building exercises. So just working from a home office isn’t going to be acceptable.
Tips for Potential Deductions for Lawn Care
- Keep Detailed Records: Maintain detailed records of your lawn care expenses, including invoices, receipts, and any communication related to the services provided. This documentation will be crucial if you ever need to justify the deductions.
- Consult a Tax Professional: Tax laws can change, and individual circumstances vary. It's always advisable to consult with a qualified tax professional who can provide personalized advice based on your specific situation.
- Explore Home Office Deductions: If you operate a business from home, inquire about potential deductions related to the portion of your property used for business purposes, including outdoor spaces.
Add Value to Your Home with a Healthy Lawn
Lawns are appealing to buyers not only because they are aesthetically pleasing but because they extend the living area of a home, providing an ideal setting for outdoor recreation, entertainment, and relaxation. So even if your professional lawn care services aren’t tax deductible, remember that what you are really saving yourself is time to focus on the more important things in life!