Is Landscaping Tax-Deductible? Here Is What to Know
Reduce your bills with tax-deductible landscaping
Highlights
Lawn care and landscaping are tax-deductible in certain situations.
Those with a home office or rental property can qualify for lawn-related tax deductions.
If you made landscaping improvements before selling your home, you can qualify for deductions.
Taxes can be taxing. But when you know the ins and outs of tax deductions, it can help you save tons of money in the long run. And as a homeowner scrutinizing your expenses for the past year, you may wonder, is landscaping tax-deductible? The answer depends on the situation, so read on to learn more.
Lawn Care Services Can Be Tax-Deductible
A lower tax bill is something to get excited about, and a good accountant will help you find all of your eligible deductions. Considering that annual lawn care costs and landscaping costs can be in the hundreds of dollars (and, for some, in the thousands), getting this deduction could really help out at tax time.
The three instances when lawn care is potentially tax-deductible are if you have a home office, if you have rental property, or if you sold your home. If, however, you are a regular homeowner, there are no deductions available.
| Category | Lawn Care and Maintenance | Landscaping |
|---|---|---|
| Home Office | Yes | Yes |
| Rental Property | Yes | No |
| Home Sale | No | Yes |
What Landscaping and Lawn Care Services Can Be Deducted?
The landscaping and lawn care services that are tax-deductible depend on how you use your home. While you will not qualify for a deduction as a regular homeowner, you may qualify if you have a home office, own rental properties, or recently sold your house.
The exact deductions you can take will depend on each of the three different scenarios and can range from regular lawn services to large-scale landscaping.
For home offices, you can deduct lawn care and maintenance costs, along with landscaping expenses, including things like driveway repairs.
If you own home rental properties, then you can deduct lawn care and maintenance costs to help you upkeep the property to its current standards.
Finally, if you recently sold your home, you can deduct landscaping expenses that were incurred to improve the property. You cannot, however, deduct expenses for ongoing lawn care and maintenance.
How to Know if You Are Eligible for Lawn Care Deductions
When it comes to taxes, details matter. Here is how to figure out if you are eligible for lawn care deductions.
Home Office
The Internal Revenue Service notes in Topic no. 509, “Business use of home,” that, “in general, you may not deduct expenses for the parts of your home not used for business, for example, lawn care or painting a room not used for business.”
So, is lawn maintenance tax-deductible? The key phrase is “in general.” To qualify for deductions, you need to look into past court rulings that allowed lawn care-related deductions for home businesses.
According to past rulings, you should meet clients, patients, or customers in your home office to qualify for deductions. Your home office must meet IRS requirements and be used “both regularly and exclusively” for business. Most home offices qualify as an indirect expense, which means that you take the deduction based on the percentage of the home that is used as an office. So, if your home is 1,500 square feet and your office is 150 square feet, then you can deduct 10% of your lawn care and landscaping costs.
Rental Property
Anything beyond regular maintenance and repair will not be tax-deductible, but rather be considered a capital improvement. Examples of capital improvements are brand-new or upgraded landscaping, sprinkler systems, installing retaining walls, a new patio, fencing, or pools. Capital improvements are not considered a current-year expense. Instead, you will get tax breaks based on the property’s depreciation over time.
So, for rental properties, you can typically deduct things like the cost to have someone mow, fertilize, and aerate your lawn.
House Sale
Home sale tax deductions are only possible if the property has sold already. Maintenance costs for your lawn and landscaping are not tax-deductible, whereas landscaping projects to improve the property are. This means that the costs to pay a lawn care company to mow, fertilize, and weed your yard are not tax-deductible, but if you installed a new fence, driveway, or walkways, those expenses are deductible.
Additionally, any work that you did that does not exist at the time of the home sale cannot count as a tax deduction. For example, let’s say you installed a new pebble walkway but decided to rip it up and pour a concrete walkway instead. In this scenario, you cannot use the costs of the pebble walkway as a tax deduction.
Hire a Pro for Landscaping or Lawn Care Services
Maintaining a good-looking lawn is very important if you are conducting business out of your home, renting out properties, or looking to sell. After all, first impressions are very important, and a yard plays a huge part in a home’s curb appeal.
Depending on your busy schedule, you may not have enough time or energy to devote to keeping your yard healthy and green. In this case, you can hire a landscaper near you to help with whatever you need.
When looking for a pro, you should first learn how to hire a landscaper. Know the right questions to ask, get at least three quotes, and check references.
Speak to an Accounting Professional for Further Information
Tax laws change from year to year, and some are region-specific. Before you make any big decisions hoping to get a tax deduction, you should consult an accountant first. That way, you know beforehand what will and will not qualify.
Whatever your situation, hiring an accountant prior to filing taxes is highly advisable if you have any questions. They can help you avoid mistakes in your tax filings and potentially help you save money. Plus, if you have a business, they can give you valuable advice throughout the year, as well as provide bookkeeping services.