Can You Write Off a Washer and Dryer on Your Taxes?

Tax deductions can reduce taxable income, but not all household purchases qualify. Whether a washer and dryer can be written off depends on their use. While generally considered personal expenses, they may be partially deductible in specific business-related situations.

Requirements for Home Equipment Deduction

To deduct a washer and dryer, the IRS requires a business purpose beyond personal use. A home-based business that relies on laundry—such as a daycare, pet grooming service, or short-term rental—may qualify for a partial deduction.

Home appliances are classified as personal property and are only deductible if they contribute to business operations. If used for both personal and business purposes, only the business-related portion can be claimed. A reasonable method, such as tracking business-related loads compared to total loads over a set period, must be used to determine the deductible percentage.

Rental property owners may also qualify if the appliances are provided for tenant use. In this case, the washer and dryer are considered assets of the rental property. These expenses typically fall under ordinary and necessary business expenses or asset depreciation.

Business Portion Calculation

Determining the deductible portion requires an accurate method of measuring business use. The IRS does not mandate a specific formula, but the allocation must be based on measurable data. A common approach is tracking the number of loads used exclusively for business over a set period and applying that percentage to the total cost, including purchase price, electricity, water, detergent, and maintenance.

For example, if a home-based pet grooming business uses the washer and dryer for 40% of total loads, then 40% of related expenses may be deductible. Consistently applying this percentage and maintaining supporting documentation, such as a log of business-related loads and utility bills, strengthens the claim.

If business use fluctuates, averaging usage over a longer period can provide a more accurate reflection. A short-term rental property, for instance, may see months of primarily business use and others dominated by personal use. Calculating an annual average ensures deductions align with actual business activity.

Depreciation Approaches

When a washer and dryer qualify as business assets, their cost is typically deducted over time through depreciation. The IRS categorizes household appliances as tangible property under the Modified Accelerated Cost Recovery System (MACRS), generally classifying them as five-year property. This allows for deductions spread over that period according to an IRS-defined schedule.

Straight-line depreciation is another option, distributing the cost evenly over the asset’s useful life. MACRS provides larger deductions in the early years, while straight-line results in equal deductions annually. Businesses preferring larger upfront deductions may opt for MACRS, while those with steady revenue might choose straight-line depreciation.

Bonus depreciation and Section 179 expensing offer faster deductions. As of 2024, businesses can claim 60% bonus depreciation on qualified assets, allowing a significant portion of the cost to be deducted in the first year. Section 179 permits immediate expensing of eligible property, up to a limit of $1.22 million in 2024, provided total equipment purchases do not exceed $3.05 million. However, Section 179 deductions cannot create a net operating loss, so businesses must consider overall taxable income before applying this method.

Recordkeeping for Verification

Thorough documentation is essential to substantiate tax deductions, especially for shared-use assets. The IRS requires evidence supporting deductions, and incomplete records can lead to disallowance in an audit. For a washer and dryer, this includes purchase receipts, utility bills, and service records demonstrating ongoing operational costs. Keeping digital copies of receipts and invoices in a dedicated tax folder ensures easy retrieval.

A well-organized record should include a written statement detailing how the appliance supports business operations. This could be a usage log outlining dates and purposes for each business-related load. If laundry services are billed to clients or included in a service package, documenting these transactions in accounting software or invoicing systems strengthens the legitimacy of the deduction. For sole proprietors or partnerships, maintaining separate financial records from personal expenses reinforces compliance.