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Tax deductions

Discussion in 'Business Operations' started by Patrick Gant, Feb 23, 2007.

  1. Patrick Gant

    Patrick Gant LawnSite Member
    Posts: 9

    Can my customers claim lawn care on their taxes as a deduction?
     
  2. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Of course they can. If they're a business, they will send you a 1099 (misc. income) no later than January 31st.
     
  3. mastercare

    mastercare LawnSite Senior Member
    Posts: 289

    If it is a commercial property, you can be sure that it's a business expense, and they will deduct it.

    If it is residential, and the homeowner uses a portion of his home as "home office" space he may deduct the equivalent percentage of home services as an expense.

    Example......if 10% of his home is used soley by his business and for no other purpose he may deduct 10% of:

    Carpet cleaning
    Lawn Service
    Gas
    Electric
    Water


    But, he has to prove that portion of his home was purchased for the purpose of running a home-based business, and that's ALL it is used for.

    If your customers are asking these questions, they should be asking their accountant!
     
  4. Patrick Gant

    Patrick Gant LawnSite Member
    Posts: 9

    Thanks Guys
     
  5. Patrick Gant

    Patrick Gant LawnSite Member
    Posts: 9

    Thanks Guys, sounds good.
     
  6. carcrz

    carcrz LawnSite Silver Member
    Posts: 2,085

    What if the company is paying for it so that they can put in more hours at the office. Then the homeowner/business owner should be able to write off the entire amount.
     
  7. statman

    statman LawnSite Senior Member
    Posts: 271

    I run my lawn business out of my home. Can I deduct a % of it?
     
  8. salandscape

    salandscape LawnSite Member
    Posts: 168

    Yes, figure the square footage of your office bring it up to your accountant they can give you the deductions from there, I believe you can also do it in Turbotax
     
  9. mastercare

    mastercare LawnSite Senior Member
    Posts: 289

    Yes, you can deduct a portion of your home as business. Additional things you can deduct, not metioned above:

    Interest paid on your home (Form 1098)
    Upgrades that benefit your business space (carpeting, remodeling, new furnace, roof, etc.)

    Other questions: Can your customer deduct lawn care as a means to reduce the number of hours at home and spend more at the office. NO! I guess you could, but you would have to prove that caring for your own lawn is the reason that you can't be as productive at work....and they would still audit you for that one and laugh the whole time. You could go on and on with services that provide you more working hours if they let you do that!

    Carpenter
    Auto washes/detailing
    electrician
    Carpeneter
    Carpet cleaners
    Carpet installers
    Roofers
    Nannies
    Cooks - additional meals out with your family
    babysitter
    dog walker
    plumber
    molly maids


    Basically, anything hired out could be deducted....I don't think that'll fly
     
  10. illday

    illday LawnSite Member
    Posts: 89

    what is the average % of business should a landscaper claim he does at home?
     

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