Landscaping is generally categorized as either an operating expense (for routine maintenance like mowing or pruning) or a capital improvement (for major, value-adding, or permanent installations like new, extensive hardscaping or irrigation systems). Routine maintenance is deductible immediately, while capital improvements are added to the property's cost basis and depreciated over time.
If you use part of your home exclusively for business, you may qualify for home office deductions, including landscaping around your home. The IRS allows deductions for expenses that benefit the entire property, such as: Lawn maintenance. Trees and shrubbery.
Generally, extensive landscaping enhancements, such as a comprehensive landscape overhaul or landscape renovation involving the installation of permanent features like outdoor kitchens or fire pits, can be considered capital improvements, especially if they significantly increase the property value and are tax ...
This means that you can only deduct the sum of money you spend to care for your lawn if your property is being used to bring in rental income or is used as a home office. According to the IRS guidelines, for your taxes to be considered deductible, your lawn needs to be “useful in business operations.”
Common categories for landscapers include fuel, fertilizer, equipment maintenance, labor, and marketing expenses. Embrace Technology: Consider using bookkeeping software designed for small businesses. These programs can automate tasks like receipt scanning, expense categorization, and generating reports.
Establishments primarily engaged in providing landscape care and maintenance services and/or installing trees, shrubs, plants, lawns, or gardens along with the design of landscape plans are classified in Industry 561730, Landscaping Services.
Plants new flowers, trees, grass, hedges, and bushes. Maintains gardens and lawns, including mowing, trimming, pruning, raking, and weeding. Waters plants and lawns and adds fertilizer as needed. Installs outdoor lighting and sprinkler systems.
Landscaping company services run the gamut. The list includes things like grading, planting, landscape design, deck and patio installation, irrigation installation, artificial turf installation, lawn returfing, path or driveway insulation, and more.
The landscape is the larger outdoor space that includes the hardscapes, trees, shrubs, flowers, and the lawn itself. Landscape maintenance is about more than just mowing the lawn; it's about ensuring the overall health and style of your outdoor environment.
Building walkways, retaining walls, and patios, implementing irrigation systems, landscaping design, and adding drainage are all examples of landscaping expenses that can be capitalized. In addition, any expenditure with a useful life of more than a year and expected to benefit the company long-term can be capitalized.
Many business expenses are 100% deductible, including advertising, employee wages, rent, supplies, and certain business meals like company parties or meals for the public, while personal deductions like student loan interest or charitable donations (depending on the type) can also be fully deductible for individuals. The key is that the expense must be "ordinary and necessary" for your trade or business or meet specific IRS criteria, often differentiating from the 50% rule for client meals.
A recent tax law ("One Big Beautiful Bill") introduced a new $6,000 bonus deduction for Americans aged 65 and older, available for tax years 2025-2028, reducing taxable income, not the tax itself, with income phase-outs starting at $75,000 MAGI for singles and $150,000 for joint filers. This deduction adds to existing standard deductions, provides up to $12,000 for couples, and requires a Social Security number and filing status other than Married Filing Separately.
Landscaping Expense Category
Operating Expenses: Routine landscaping and maintenance are typically classified as operating expenses. These are the ongoing costs a business incurs to run its daily operations.
Landscaping refers to living in your backyard, such as flowers and trees; hardscaping is all non-living elements, such as walls and pergolas. Both are important and complement each other. For example, retaining walls control drainage and keep plants healthy while adding visual interest and structural support.
Much of the daily work done in the landscape industry falls under the repairs and maintenance category.
NAICS 561730 - Landscaping Services is part of: NAICS 561700 - Services to Buildings and Dwellings. SOC Major Groups in NAICS 561730 - Landscaping Services: 00-0000 All Occupations. 11-0000 Management Occupations.
Common synonyms for landscaper include gardener, landscape gardener, horticulturist, groundskeeper, and nurseryman, with related terms depending on the specific focus like landscape architect (design) or greenskeeper (turf maintenance).
Landscape Maintenance Technicians – These professionals keep landscapes looking beautiful. They work in residential and commercial settings pruning, mowing, mulching, edging, fertilizing, testing soil, aerating, etc.
For landscaping businesses, the two most recommended structures are LLCs and S Corporations. While sole proprietorships are simple, they leave your personal assets completely exposed to business risks. Limited Liability Company (LLC): Protects personal assets from business liabilities while maintaining tax simplicity.
37-3011 Landscaping and Groundskeeping Workers
Workers typically perform a variety of tasks, which may include any combination of the following: sod laying, mowing, trimming, planting, watering, fertilizing, digging, raking, sprinkler installation, and installation of mortarless segmental concrete masonry wall units.
Grounds Maintenance Workers ensure that the grounds of houses, businesses, parks, and urban spaces are attractive, tidy, and healthy to provide a pleasant outdoor environment. They can work for local authorities, private estates and businesses, or as part of a larger grounds maintenance team for commercial customers.