Happy New Year! As we head into another cold January, businesses are starting to organize their documents for taxes. One question that sometimes comes up is, are landscaping costs deductible? This comes up for property management companies, businesses, and those who are renting out a space.
While we’re not tax experts, and you should speak to your own tax professional before making any decisions, we want to share some things we’ve learned over the years. These are great things to bring up with your accountant as you prepare for another year of filing taxes.
Working at Home
If you, like many others, have transitioned to working from home, you get a deduction on your taxes for the percentage of your home that you use for your office. That percentage then applies to what you pay for the home, which can include landscaping.
That may seem like a surprise for those of you who are office workers but imagine someone running a daycare center from their home or having clients come to meetings at their home. In these cases, the look and functionality of your landscaping matters to your business. In the case of the daycare center, the landscape could even be damaged by the business.
If your yard is regularly used for business, speak to your accountant about how to track that. For instance, you could run a doggy daycare. In that case, you need your yard for your business and may see some damage to that yard that is tax deductible.
If you’re a landlord or property manager, there may be some landscaping that can be tax deductible. The IRS may consider landscaping part of your capital investment, but it could also be looped into other household repairs. You’ll want to chat with your tax advisor and keep good records of any repairs or landscaping made throughout the year.
One thing to remember, though, is that the deductions here mostly apply to repairs and maintenance. They don’t apply to improvements. It might be great to add a pool or some new greenery, but that’s not a necessary expense which likely means it won’t be deductible.
One way that you can improve your landscaping and still make it deductible is by improving accessibility for people with disabilities. This deduction could apply to any business that has visitors. If your property isn’t currently accessible to someone in a wheelchair, you can make it more accessible and possibly deduct that expense. That includes things like adding in ramps or making a current ramp less steep. You could even widen walkways.
It’s always a good idea to look into how you might make your business more accessible to a larger number of people. If you haven’t looked into that in a while, this might be a good year to make some plans to adjust things so you can become more accessible.
Landscaping Plans For The New Year?
Did you start the year with some landscaping projects in mind? If so, get on our calendars today. We can start planning things out and make sure that everything can be accomplished for you by the time you need it.