While we at Clarksilva are gearing up for another crazy tax season, some others are gearing up for a different season: spring! The flowers and trees will be blooming and the birds and bugs will be returning. This got us thinking about two things: allergy medication and taxes. Outside of running a botanical garden or plant nursery, can landscaping be tax deductible?

If you own a commercial property, then the answer is yes – your landscaping can be a deductible expense for your business. This can include monthly landscaping services and even pest control measures. If you are in the business of rental properties, your landscaping services can also be tax deductible as part of the general maintenance and upkeep of your property. This can also include things like tree trimming, mold remediation and exterior painting. Anything outside of basic services could be considered a capital improvement and instead qualify for a tax break on the property’s depreciation over time. This would be something like brand new landscaping, installing sprinkler systems or even building a patio or pool. It’s best to consult with a tax advisor beforehand if you are planning on making some major changes to your rental property that might affect your taxes as a business.

What about if you have a home office? This is where things get a little tricky. Landscaping in general is not tax deductible unless you are regularly meeting clients, customers and patients in your home office. Your home office must meet the IRS requirements to be eligible including being used ‘exclusively and regularly’ as your place of business. Most frequently, it would be based on the percentage of your home that is used as a home office. So if your home is 2,000 square feet and your office is 200 square feet, you could potentially deduct 10% of your landscaping expenses for your business.

In order to take advantage of landscaping as a tax expense, you’ll need to be able to reasonably allocate expenses between your home office and overall house and keep detailed documentation including receipts, invoices and bank statements. You should also consider the timing of the deductions, when they are paid vs when they are performed for services that are sometimes billed at annual instead of monthly increments. If you have any questions about deductible expenses for your home office or commercial business, reach out to a qualified tax advisor who can help you navigate the changes in tax code and find the best savings for you. Our team at ClarkSilva is ready to help anytime!