Can You Write Off House Cleaning on Your Taxes?

Tax season often prompts individuals to scrutinize their expenses for potential deductions. One area to consider is house cleaning costs, which might offer financial relief for those maintaining cleanliness and order.

House Cleaning Expenses for Rental Activities

For rental properties, house cleaning expenses can be deductible if they directly relate to maintaining and operating the rental. The IRS allows landlords to deduct necessary expenses incurred in managing rentals, including cleaning between guest stays in vacation properties.

Expenses must be tied to rental activities. For properties used partially for personal purposes, only the portion of cleaning costs attributable to rental use is deductible. For example, if 60% of your property is rented, 60% of cleaning expenses can be claimed. Retaining clear records is essential to substantiate these claims, as the IRS requires proof that expenses are directly related to rental activity.

Allocating Cleaning Costs for Home Offices

The IRS permits a deduction for a portion of home expenses, including cleaning, if part of the residence is used exclusively and regularly for business. These expenses are allocated based on the percentage of the home used for business purposes.

For instance, if your home office occupies 200 square feet in a 2,000-square-foot home, you can allocate 10% of your cleaning expenses to the home office deduction. Accurate records of both total cleaning expenses and the specific area of the home used for business are necessary to comply with IRS rules and maximize deductions.

Deductions for Short-Term Rentals

Short-term rentals have distinct tax considerations. They may be classified as a business rather than a rental activity if substantial services, such as cleaning, are provided. This distinction allows property owners to deduct a broader range of business expenses under IRS tax code Section 162.

Cleaning services for short-term rentals are often more extensive due to the transient nature of guests. These expenses can be deducted in full if the property is deemed a business and the expenses are ordinary and necessary. However, if the property is used for personal purposes, the deduction must be prorated based on the rental period.

Documentation for House Cleaning Expenses

Accurate documentation is critical for deducting house cleaning expenses. Retain receipts and invoices from service providers as proof of costs. For those managing multiple properties or a home office, a detailed log or spreadsheet can help track expenses. This should include the date of service, type of cleaning work, and the specific property or area serviced.

Digitizing records can simplify the process. Accounting software or expense-tracking apps can help categorize expenses correctly and reduce errors. These tools also allow you to attach digital copies of receipts, making documentation easily accessible. In the event of an IRS audit, organized records can simplify the burden of proof.

Filing Considerations

Proper reporting is essential when claiming house cleaning expenses. For rental properties, cleaning costs are reported on Schedule E (Supplemental Income and Loss), under “Cleaning and Maintenance.” This ensures compliance and accurate calculation of net rental income.

For home office deductions, cleaning expenses are reported on Form 8829 (Expenses for Business Use of Your Home) alongside Schedule C (Profit or Loss from Business) if self-employed. Form 8829 requires detailed calculations to allocate expenses between personal and business use. For example, if total cleaning expenses are $1,000 and the home office occupies 10% of the home, $100 can be reported as a deductible cleaning expense.

For short-term rentals classified as a business, cleaning expenses are reported on Schedule C. This allows for a broader range of deductions, including those tied to active business operations. Taxpayers must accurately differentiate between personal and business use of the property to avoid IRS scrutiny. Consulting a tax professional can help ensure compliance and optimize deductions.