Tax time is a part of the year that most people dread. It brings with it mad scramble to get everything together to file with the government so that the IRS has no reason to come knocking. And while we would all love to claim every little thing we do to our home or property as a deduction, a landscaping tax deduction can only be made after you’ve sold your home or – in some cases – if you run a home business.
When Do Landscaping Deductions Kick In?
The sale of a home brings with it the requirement of paying capital gains tax on the difference between the selling price and the adjusted basis, which refers to the amount of money invested into property improvements during your time of ownership on top of the basis – or original purchase price – of the home. In other words, you have to sell your home before you qualify to take a landscaping tax deduction. A nice thing when you’re declaring the profit on your tax form, but not so much while you’re still paying the bill for the landscaping work you’ve just done.
Deductible or Not Deductible?
The details of a landscaping tax deduction matter, as well. The maintenance work like mowing, weeding and fertilizing don’t count. In a dream world, they would, but taxes are hardly something that would exist in a dream world, are they? On planet Earth, however, a landscaping tax deduction only includes the major work: the installation of a landscape irrigation system, building walkways or adding a driveway, constructing fences or laying sod…the big stuff. And all of it must still exist at the time of the sale. In other words, if you sod your entire backyard and then rip it all up to install a pool and build a deck, the investment made in the sod no longer counts as a landscaping tax deduction.
Business Write-Offs for Landscaping
In the case of running a home business, a portion of the home and property expenses is tax-deductible as a business expense. This creates a landscaping tax deduction for home business owners who meet clients at their home office. The reason for that is as simple as the fact that landscaping is part of keeping the home –which functions as the office – looking its best, qualifying it as a business expense. The percentage of the home used for the business translates into the percentage that qualifies as a landscaping tax deduction for things like lawn maintenance, landscaping projects and the upkeep of the driveway.
At Executive Landscaping, Inc., we have years of experience in working with clients located all across the Gulf Coast in achieving landscaping projects that give them the best landscaping return on investment. Our team will suggest improvements that make the most sense for a landscaping tax deduction. Every property is a masterpiece waiting to shine, and we have the vision and the knowledge to bring it to life.
Give Executive Landscaping, Inc. a call to learn more about claiming a landscaping tax deduction today!