Are Landscaping Improvements Tax Deductible? A Homeowners Guide to Tax Deductible Landscaping
Introduction: Landscaping improvements can breathe new life into outdoor spaces, enhancing curb appeal, boosting property values, and creating inviting environments for homeowners and businesses alike. But amidst the allure of lush gardens and manicured lawns, many property owners wonder: can landscaping expenses be deducted from taxes? In this blog post, we'll unravel the complexities of landscaping tax deductions, exploring the eligibility criteria, allowable deductions, and potential tax benefits for property owners investing in outdoor beautification.
Understanding Tax Deductions: The Basics
Tax deductions are expenses that taxpayers can subtract from their taxable income, reducing the amount of tax owed to the government.
While certain expenses related to property ownership may be eligible for deductions, the IRS imposes strict guidelines and limitations on what can be claimed as deductible expenses.
Landscaping as a Capital Improvement
Landscaping improvements that enhance the value or useful life of a property are typically considered capital improvements rather than deductible expenses.
Capital improvements are added to the cost basis of the property and may be depreciated over time, rather than deducted in the year they are incurred.
Eligible Landscaping Expenses for Tax Deductions
While landscaping expenses themselves may not be directly deductible, certain related expenses may qualify for tax deductions under specific circumstances:
Home Office Deduction: Property owners who operate a home-based business may be able to deduct a portion of landscaping expenses associated with maintaining the home office space.
Rental Property Expenses: Landlords may deduct landscaping expenses as operating expenses for rental properties, provided they are considered ordinary and necessary for the production of rental income.
Energy Efficiency Improvements: Some landscaping improvements, such as the installation of energy-efficient landscaping features or water-saving irrigation systems, may qualify for tax credits or incentives under federal or state energy efficiency programs.
How to Make Landscape Renovations Tax-Deductible: A Homeowner’s Guide
Getting Specific..
If your landscaping improvements increase your property’s value, support business use, conserve energy, or meet medical needs, you may be able to claim them as tax write-offs. In this guide, we’ll break down how you can legally deduct landscaping expenses and maximize tax benefits while upgrading your outdoor space.
1. Home Office Deductions for Landscaping
If you use part of your home exclusively for business, you may qualify for home office deductions, including landscaping around your home. The IRS allows deductions for expenses that benefit the entire property, such as:
Lawn maintenance
Trees and shrubbery
Driveway and pathway improvements
Fence installation
How to Qualify
✔ You must regularly use part of your home for business purposes (e.g., a detached office or home workspace).
✔ The landscaping must improve the professional appearance of your property (e.g., client-facing business).
✔ Only a proportion of the expense is deductible based on the size of your home office.
Example Calculation
If your home office is 15% of your home’s total square footage, you can deduct 15% of eligible landscaping costs.
📌 Example: If you spend $5,000 on landscaping, you can deduct $750 ($5,000 x 15%).
2. Energy-Efficient Landscaping & Tax Credits
The IRS offers tax credits for homeowners who install energy-efficient upgrades, including landscape improvements that help reduce energy consumption.
Eligible Energy-Efficient Landscaping Expenses
✔ Installing shade trees or windbreaks to reduce cooling/heating costs
✔ Installing solar-powered outdoor lighting
✔ Adding rainwater collection systems or permeable paving
Tax Benefit: Energy Efficient Home Improvement Credit
Under the Inflation Reduction Act, homeowners can claim up to 30% of eligible energy-efficient upgrades, including landscaping projects designed to conserve energy.
3. Medically Necessary Landscaping Deductions
The IRS allows medical expense deductions for landscaping modifications that are medically necessary. If a doctor prescribes an outdoor modification to assist with mobility or health, it may qualify as a medical expense deduction.
Eligible Medical Landscaping Expenses
✔ Wheelchair-accessible paths
✔ Paved ramps for mobility access
✔ Adaptive gardening features for disabilities
✔ Non-slip surfaces for individuals with mobility impairments
Important IRS Rules
The primary purpose must be medical necessity.
If the modification increases property value, only the non-recoverable portion is deductible.
4. Landscaping for Rental Properties
If you rent out your property (even part-time on Airbnb), landscaping expenses may be fully deductible as a business expense. The IRS considers landscaping for rental properties as a maintenance cost, which can be deducted against rental income.
What Landscaping Expenses Are Deductible for Rental Properties?
✔ Routine lawn care (mowing, fertilization, seasonal clean-ups)
✔ Irrigation system installation & repairs
✔ Tree trimming or removal for safety reasons
✔ Hardscaping improvements that attract tenants (patios, pathways, lighting)
How to Claim Landscaping Deductions for Rentals
If your property is 100% rental, you can deduct 100% of landscaping costs.
If you live in part of the home and rent out a section, only a percentage of expenses is deductible (based on rental use).
📌 Example: If you rent out 40% of your home, you can deduct 40% of landscaping expenses.
5. Capital Improvements: Landscaping That Increases Home Value
Certain landscape improvements that increase the value of your home may qualify as capital improvements, which reduce capital gains tax when you sell your home.
Eligible Capital Improvement Landscaping Projects
✔ Retaining walls & drainage systems
✔ Permanent patios, decks, or outdoor kitchens
✔ New driveways or paved walkways
✔ Major landscape redesigns with long-term benefits
Tax Benefit: Lower Capital Gains Tax
These improvements aren’t deducted immediately.
Instead, they increase your home’s cost basis, reducing the taxable gain when you sell your property.
📌 Example:
If you spend $15,000 on landscaping and later sell your home, your taxable capital gain decreases by $15,000, potentially saving you thousands in taxes.
Final Thoughts: How to Make Your Landscaping Tax-Deductible
To legally deduct landscaping expenses, homeowners need to:
✔ Determine eligibility (business use, medical necessity, rental property, energy efficiency, or capital improvement).
✔ Keep detailed records of all landscaping costs, including receipts and invoices.
✔ Consult a tax professional to ensure compliance with IRS regulations.
While most landscaping expenses aren’t deductible for personal use, strategic planning can help homeowners maximize tax benefits while enhancing their outdoor spaces.
Would you like to discuss landscaping improvements that qualify for tax deductions? Contact JOSEPH BULFAMANTE & SON LANDSCAPE CONTRACTORS today! 🌿🏡
The information provided in this article is for general informational purposes only and should not be considered legal or tax advice. We are not Certified Public Accountants (CPAs) or tax professionals. Tax laws vary by state and individual circumstances, so we strongly recommend consulting a qualified CPA or tax advisor in your state before making any financial or tax-related decisions regarding landscaping deductions.