If you are a self-employed landscaper who cuts grass and trims trees for residential or commercial property, here are some tax tips and tax deductions for landscapers to help you keep more of the hard-earned income your landscaping business generates:
Tax Tips for Landscapers
– From a tax-saving standpoint, it is usually best to depreciate the cost of business-related equipment like lawn mowers over the course of several years instead of claiming such equipment as a one-time deduction on your tax return.
– Some states require landscapers to collect sales taxes on their services. Check with your state to be sure you are properly handling any sales tax requirements in the state(s) in which you perform your landscaping work.
– When you deduct vehicle expenses you incur to travel to your landscaping sites, use either the mileage option – 57.5 cents per mile for tax year 2015 – or the actual vehicle expenses option.
– Landscapers cannot deduct any expenses that are reimbursed to them by an employer.
Tax Deductions for Landscapers
As a landscaper, you can generally deduct the following expenses on your federal income tax return:
• Lawn mowers and gas
• Other lawn equipment you need to perform your services
• Business licensure fees
• Safety gear, i.e. gloves, footwear, goggles, first aid kits, trash bags
• Mileage driven to conduct your trade as a landscaper
• Phone, Internet, and data plans used for your landscaping business
• Electronics and services for your truck and the costs to repair them
• Truck maintenance and repair expenses
• Truck maintenance items, i.e. window cleaners, Rain-X, paper towels
• Office supplies, i.e. pens, paper, envelopes, etc.
• Postage fees for mailing invoices
• Marketing expenses to promote your landscaping business, i.e. business cards, flyers, a website, online advertising, etc.
• Miscellaneous items that help you do your job as a landscaper
Brendon Pack is Vice President of Sales & Business Development at 1-800Accountant, the nation’s leading accounting firm for small business owners. Mr. Pack has developed an innovative line-up of products to assist business owners with their tax and accounting needs. He is dedicated to making accounting easy, accessible, and affordable for small-business owners everywhere.