Maintaining the grounds of a rental property, including mowing, trimming, and other landscaping expenses, is generally considered a deductible operating expense for landlords. This deduction applies to properties rented for profit, whether residential or commercial. For example, the cost of hiring a professional landscaping service or the purchase of lawn care supplies like fertilizer and mulch can be deducted. These expenses are typically reported on Schedule E (Form 1040), Supplemental Income and Loss from Rental Real Estate and Other Estates or Trusts.
Deducting these costs helps landlords accurately reflect their net income from rental activities. By reducing taxable income, these deductions can contribute to significant savings over time. Properly managing and documenting these expenses is crucial for tax compliance and maximizing profitability. Historically, such maintenance costs have been recognized as ordinary and necessary expenses associated with property management, reflecting the understanding that maintaining curb appeal and a functional outdoor space are essential for attracting and retaining tenants.
