Is Lawn Care Tax Deductible for Your Home Business?

Running a home business comes with various expenses, some of which may be tax-deductible. Many business owners wonder whether lawn care costs qualify, especially if part of their property is used for work. While certain outdoor maintenance expenses might be deductible, the IRS has strict guidelines on what qualifies.

Understanding how to classify these costs correctly and maintaining proper documentation is essential to avoid IRS scrutiny.

Business vs. Personal Expense Classification

The IRS distinguishes business expenses from personal ones based on whether a cost is “ordinary and necessary” for business operations under Section 162 of the Internal Revenue Code. Lawn care is typically considered a personal expense since maintaining a home’s exterior benefits the homeowner. However, if part of the property is used exclusively and regularly for business, some outdoor maintenance costs may qualify.

For example, if a home-based business involves client visits—such as a daycare or a home office where customers are received—expenses related to maintaining that space could be deductible. The IRS has recognized that landscaping costs for areas tied directly to business activities may be considered business expenses, similar to deductions for cleaning services in a dedicated home office.

The structure of the business affects how deductions are claimed. Sole proprietors typically report expenses on Schedule C (Form 1040), while LLCs and S corporations must account for them in their financial statements. Misclassifying personal expenses as business deductions can lead to audits and penalties under Section 6662 for accuracy-related errors.

Determining Qualifying Lawn Areas

Deductible business expenses must be directly related to operations. General yard maintenance for a personal residence does not qualify, but specific areas designated for business might.

If a home-based business has an outdoor workspace, such as a patio for client meetings or a section of the yard for product demonstrations, maintaining that area could be deductible. Similarly, if business signage is on the property, the upkeep of the surrounding landscape to maintain visibility and professionalism could qualify. The IRS has allowed deductions for expenses that contribute to a business’s public image, particularly when they impact customer interactions.

To qualify, the space must be used regularly and directly contribute to business income. A garden serving as a backdrop for a photography business or a maintained lawn for outdoor consultations could qualify. However, simply taking business calls outside would not be sufficient. The IRS scrutinizes deductions that lack a clear business function.

Proportion of Costs for Shared Spaces

When a lawn serves both personal and business purposes, only a portion of the maintenance expenses can be deducted. The IRS requires a reasonable method to allocate costs between business and personal use.

A common approach is to measure the square footage used for business and compare it to the total yard size. For example, if a 500-square-foot area is used for business within a 5,000-square-foot lawn, only 10% of maintenance costs—such as mowing, fertilization, and pest control—would be deductible. This percentage-based allocation follows the same principles as home office deductions, requiring a clear, quantifiable method to justify expenses.

Another method involves time-based allocation. If a portion of the yard is used for business during specific hours—such as outdoor client meetings or seasonal business operations—the proportion of business use can help determine the deductible amount. This may require additional documentation, such as a usage log, to substantiate the claim.

Required Documentation of Related Costs

Thorough records are necessary to support any lawn care deductions. The IRS requires documentation that clearly demonstrates both the expense and its direct connection to business operations. Without proper records, deductions can be disallowed in an audit, leading to additional tax liabilities.

Invoices and receipts from landscapers, lawn care services, or purchases of materials such as fertilizer, mulch, or plants should be retained. These documents must include the date of service, specific work performed, and amount paid. If employees or independent contractors are hired for maintenance, records of payments, including Form 1099-NEC filings when applicable, should be maintained.

A written log detailing the frequency and purpose of lawn maintenance can further support the deduction. This might include notes on scheduled upkeep, client visits, or business-related events that justify the expense. Bank and credit card statements should also be preserved to confirm payments, supplemented with itemized invoices to distinguish business-related costs from personal expenses.

Consequences of Incorrect Deductions

Claiming lawn care expenses improperly can lead to tax consequences. The IRS closely examines deductions related to personal property, particularly when they appear excessive or lack clear business justification. If an expense is deemed non-deductible, the taxpayer may be required to repay the amount deducted, along with interest and potential penalties.

Under Section 6662 of the Internal Revenue Code, accuracy-related penalties can apply if a deduction is found to be negligent or lacking substantial authority. This penalty is typically 20% of the underpaid tax. If the IRS determines that the claim was fraudulent, penalties can be more severe, including a 75% civil fraud penalty under Section 6663. In extreme cases, intentional misrepresentation could lead to criminal charges for tax evasion under Section 7201, resulting in fines or imprisonment.

Incorrect deductions can also increase the likelihood of an audit. The IRS uses algorithms and red flags to identify unusual claims, and excessive deductions related to a home business may trigger scrutiny. If audited, taxpayers must provide documentation to justify claims. Failure to do so can result in additional tax liabilities and prolonged disputes with the IRS.

Non-Deductible Instances

Not all lawn care expenses qualify for deductions, even if a home business is operated. The IRS disallows deductions for expenses that primarily benefit the homeowner rather than the business. If the lawn is maintained for aesthetic purposes without a direct business function, the costs cannot be deducted.

For example, if a business owner works from a home office but does not meet with clients or use the outdoor space for business activities, lawn care remains a personal expense. Similarly, general landscaping improvements, such as planting trees or installing decorative features, do not qualify unless they serve a documented business purpose. Even if part of the yard is used for work, costs associated with personal enjoyment—such as maintaining a backyard garden or installing a fountain—cannot be allocated as business expenses.

If a business is operated from home but does not have a designated outdoor area for work-related functions, the IRS will not allow deductions for lawn maintenance. This applies even if the business is registered with the state or listed on marketing materials. The presence of a home-based business alone does not justify deducting general property upkeep costs.