With its well-manufactured lawns, Long Island is a hotbed for landscapers. This time of year, the challenge for landscapers is not keeping lawns green but instead maximizing income tax returns. That’s why we’re here to offer small business tips for landscapers to use when filing tax returns.
Small business tips for deductions
Landscapers can deduct many common expenses, including capital purchases, business expenses and vehicle use.
Capital expenses
Business items, like a lawnmower, can be deducted over time. One of our small business tips is to spread the deduction of a capital purchase over the life of the item. If a lawn mower will last four years, landscapers can deduct a quarter of its worth a year. Following this strategy will maximum landscapers’ income tax deductions.
Business expenses
According to the IRS’ small business tips, landscapers’ common and necessary expenses can be considered for business deductions. It’s important to always keep receipts, because even the fuel used to drive a lawnmower can be deducted. Small common and necessary business expenses that add up quick can put money back in landscapers’ pockets when their tax return arrives in the mail.
Vehicle use
Landscapers who use their work trucks for personal use may think these vehicles are ineligible for deductions. Think again. Mileage and upkeep are tax-deductible. Our small business tips suggest that landscapers are certain to keep records that detail which miles were personal and which were business.
Sales tax exemption
Our list of small business tips for landscapers would not be complete without this important point: labor is exempt from sales tax. However, if products, like plants, are sold to a customers, those items are subject to sales tax. Landscapers should make sure to itemize all records to avoid overpaying sales tax.
For questions about our small business tips for landscapers or any other income tax questions, please call us at (516) 794-5752. JRH & Associates, Inc., is an accounting, tax, and business consulting firm backed by over 20 years of experience and driven by a passion for excellence. Our Long Island team serves over thirty industries and prides itself on delivering individualized, effective service and consultation.