Spring is in the air, and that means it’s time to tackle the yard. A new lawn mower might be on your shopping list, but before you make that purchase, you might be wondering if you can claim it on your taxes. After all, who wouldn’t want to save a little money on a big purchase like that? This article will explore the potential tax deductions associated with lawn mower purchases and delve into the complexities of claiming one on your tax return.
In short, you can’t directly claim a lawn mower purchase on your taxes. While it might seem like a home improvement expense, the IRS doesn’t consider lawn care a necessary expense for your home. However, there are some circumstances and deductions that could indirectly help offset the cost. Let’s break down the details.
Understanding Tax Deductions and Expenses
To understand why you can’t directly claim a lawn mower, we need to understand how tax deductions work. Deductions are expenses that are allowed by the IRS to reduce your taxable income, ultimately lowering your tax liability. These deductions generally fall into two categories:
- Above-the-line deductions: These are taken on your Form 1040 and can be claimed regardless of whether you itemize your deductions. Examples include student loan interest and contributions to a traditional IRA.
- Below-the-line deductions: These are taken on Schedule A, and you must itemize your deductions to claim them. These deductions are often related to home ownership or charitable contributions.
The purchase of a lawn mower typically falls outside of these categories. The IRS classifies it as a personal expense, not a business expense or a home improvement deduction.
Can You Claim a Lawn Mower If You’re a Business Owner?
If you’re using the lawn mower for your business, you may be able to deduct its cost. For example, a landscaping business would be able to deduct the purchase of a lawn mower as a business expense. This is because the lawn mower is essential for generating income for the business. However, this deduction would need to be documented with proper business records and would be subject to the general rules for deducting business expenses.
Deductible Business Expenses:
- Cost of the mower: You can generally deduct the full purchase price of the mower in the year it’s purchased, although there may be some depreciation rules that apply.
- Maintenance costs: Costs associated with maintaining the mower, such as repairs, oil changes, and sharpening, can also be deducted.
- Fuel costs: If the lawn mower uses gasoline, you can deduct the cost of the fuel used while operating it for business purposes.
Remember, to deduct business expenses, you’ll need to keep thorough records, including invoices and receipts. You’ll also need to make sure that the expenses are directly related to your business and not used for personal purposes.
Can You Claim a Lawn Mower as a Home Improvement Expense?
You might be tempted to claim a lawn mower purchase as a home improvement expense. After all, a well-maintained lawn can add curb appeal to your home. However, the IRS doesn’t consider lawn care a necessary expense for home ownership. Therefore, you can’t deduct the cost of a lawn mower as a home improvement expense.
Deductible Home Improvement Expenses:
The IRS outlines specific categories of home improvement expenses that can be deducted. These include:
- Capital improvements: These are major improvements to your home that increase its value and useful life. Examples include adding a new room, installing a new roof, or replacing windows.
- Repairs and maintenance: These are necessary repairs that keep your home in good working order. Examples include fixing a leaky faucet or replacing a broken window.
However, routine lawn care, such as mowing, trimming, and fertilizing, does not qualify as a home improvement expense.
Other Potential Deductions:
While you can’t directly claim a lawn mower purchase, there are other deductions that might indirectly help offset the cost:
Property Taxes
If you paid property taxes on your home, you can claim a deduction on your federal income tax return. Even though you can’t deduct the cost of the lawn mower directly, reducing your property taxes through a deduction can indirectly help you save money overall.
State and Local Tax (SALT) Deduction
The Tax Cuts and Jobs Act of 2017 placed a $10,000 limit on the total amount of state and local taxes you can deduct. This includes property taxes, as well as state and local income taxes. While this limit may affect how much you can deduct, it can still provide some savings.
Charitable Donations
If you donate your old lawn mower to a charitable organization, you may be able to claim a charitable contribution deduction on your taxes. The value of the donation will be based on its fair market value, which is typically the amount you could sell it for in a used condition.
Conclusion:
The purchase of a lawn mower, while essential for many homeowners, is generally considered a personal expense and cannot be directly claimed on your taxes. While you can’t deduct the purchase price itself, there are other deductions, such as property taxes and charitable donations, that could potentially offset the cost indirectly. Additionally, if you are a business owner using the lawn mower for your business, you may be able to deduct the purchase price and related expenses. Remember to consult with a tax professional to ensure you are claiming all the deductions you’re eligible for and to stay compliant with the latest tax laws.
FAQs
1. Can I claim a lawn mower on my taxes if I use it for my business?
Yes, you can generally deduct the cost of a lawn mower on your taxes if you use it for your business. This applies if you’re a landscaping company, a lawn care service, or any other business that uses a lawn mower for its operations. To claim the deduction, you’ll need to ensure that the lawn mower is used exclusively for business purposes and not for personal use. You’ll also need to keep accurate records of all expenses related to the lawn mower, such as its purchase price, maintenance costs, and depreciation.
Remember, the IRS classifies these business expenses as “ordinary and necessary” for conducting your business. They are deductible as long as they meet specific criteria, such as being directly related to generating revenue and being reasonable in amount.
2. Can I claim a lawn mower on my taxes if I use it for my home?
No, you cannot claim a lawn mower on your taxes if you use it exclusively for your personal use at home. The IRS doesn’t allow tax deductions for personal expenses, and using a lawn mower to maintain your own property is considered a personal expense.
However, you might be able to claim a portion of the lawn mower’s cost if you use it for both business and personal purposes. This is called a “mixed-use” deduction. To claim this, you’ll need to track how much you use the lawn mower for business versus personal use and allocate the expense accordingly. This can be done by keeping a log of the hours the lawn mower is used for each purpose or using a mileage-based calculation.
3. What tax form should I use to claim the lawn mower deduction?
If you’re claiming the lawn mower as a business expense, you’ll need to use Form 4562, Depreciation and Amortization. This form allows you to claim depreciation on business assets like a lawn mower.
You’ll need to determine the useful life of the lawn mower and calculate its depreciation expense over that period. This information can be found in IRS Publication 946, How to Depreciate Property. Alternatively, you can use the IRS’s online depreciation tool, which can help you calculate the depreciation expense for various types of assets.
4. Can I claim the full cost of the lawn mower in one year?
You can’t usually claim the full cost of the lawn mower in one year unless you elect to expense it under the “Section 179” deduction. This allows businesses to deduct the full cost of certain assets in the year they are purchased, up to a certain limit. However, the Section 179 deduction is subject to limitations and may not be available for all types of lawn mowers.
If you don’t elect to expense the lawn mower under Section 179, you’ll need to depreciate its cost over its useful life. This means you’ll deduct a portion of the cost each year until the asset is fully depreciated.
5. What if I buy a used lawn mower for my business?
If you purchase a used lawn mower for your business, you can still claim a tax deduction for its cost. You’ll need to determine the fair market value of the used lawn mower at the time you purchased it, and use that value to calculate depreciation expense.
Keep in mind that the purchase price of a used lawn mower may be significantly lower than the price of a new lawn mower. However, its remaining useful life might also be shorter, affecting the total depreciation you can claim over its lifetime.
6. What if I use the lawn mower for both business and personal purposes?
As mentioned earlier, you can claim a deduction for the portion of the lawn mower’s cost that is used for business purposes if you use it for both business and personal use. This is called a “mixed-use” deduction.
To determine the deductible portion, you’ll need to keep accurate records of the percentage of time the lawn mower is used for business purposes. For example, you might keep a log of the hours spent using the lawn mower for business tasks versus personal lawn care. This data can then be used to allocate the expense between business and personal use.
7. What if I sell my lawn mower later on?
If you sell your lawn mower later on, you may need to adjust your tax liability based on the sale proceeds. If you sold the lawn mower for more than its adjusted basis (its original cost minus accumulated depreciation), you’ll need to pay capital gains tax on the difference. However, if you sold the lawn mower for less than its adjusted basis, you may be able to claim a capital loss.
It’s crucial to keep detailed records of the lawn mower’s purchase price, depreciation expense, and sale proceeds to accurately determine your tax liability when you sell the asset. Consulting a tax professional can help ensure you’re fulfilling your tax obligations correctly.