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Tax Deductions

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  • Tax Deductions

    Dean asked the question:

    I purchased a new 52" walk behind mower on 12-30-05 for $5375. *Can it all be deducted for the 2005 tax year.

    In short, no. At least not all at once...

    Expenses such as dumping, rent and fuel can be deducted in whole, all at once. However, capital equipment, (aka assets or equipment) is written off over several years. This is called depreciation and only the amount of the depreciation can be deducted from your taxes each year. The rate at which you can depreciate your equipment depends on where you live and what the equipment is. For example, it could be that a computer depreciates very quickly (perhaps deducting the entire amount over 2 or 3 years). However, a vehicle might depreciate over 10 years. A lawn mower would probably fall in the middle. So you can definitely write off a percentage of the $5375 but to find out exactly how much, please talk to a tax professional or your accountant to find out the depreciation rate for your mower. It is a good idea to get professional help when preparing the tax return for your business.

    Thanks for your question!
    Joel LaRusic
    Consultant/Author, Start & Run a Landscape Business

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