In addition to other benefits of “yard venture” there are significant Tax advantages from the YardVenture landscaping alternative:
- The costs of “traditional” landscaping service cannot be immediately deducted. Some costs of landscaping a residential property can become a tax deduction, but it happens over a long period of time. There are circumstances where part of the cost of landscaping is depreciable. But it depends on the purpose of the project, whether or not it’s associated with a home business and how the property is used almost all your landscaping expenses can be written off and decrease your taxable income dramatically.
- According to Kiplinger, sole proprietors who meet clients on a regular basis in their home can deduct only a PORTION of landscaping costs. This deduction is limited to the percentage of the home used for conducting business. Things that may be deductible for a homeowner are capital improvements i.e. new paver walkways and drives, newly installed landscapes (shrubs and trees not just flower beds), outdoor kitchens, new retaining walls, new sprinkler systems etc. BUT if you make your mini-nursery the home business, the plants, equipment, construction, materials (pots, soil, fertilizers) and marketing related to your plants can become a business expense as well – there is hardly any other business that can offer you similar advantages. There probably are regulations and ordinances about traffic into your home businesses. Consult local regulations and restrictions about home businesses in your area, but in almost all cases mail-order delivery and B2B telesales can be great models for your urban nursery business.
Note: The information above is only for general information purposes. Consult your CPA on exactly which expenses you can write off immediately, annually, and which ones will need to be depreciated over time. Also please consult your lawyer on any local regulations, zoning and other restrictions.