Tax Deductions for Landscaping Businesses: Equipment, Vehicles, and Crew Costs

Landscaping is an equipment-intensive business. Between mowers, trailers, trucks, trimmers, blowers, and all the supplies, a landscaping company can spend $50,000-$200,000 on equipment in its first year. The good news: the tax code allows most of this to be written off immediately through Section 179 and bonus depreciation, generating a large deduction that can wipe out or significantly reduce the tax bill in the year of purchase.

What equipment can be written off immediately?

All equipment used in the landscaping business qualifies for Section 179 or bonus depreciation:

Mowers and power equipment: Commercial zero-turn mowers ($5,000-$15,000 each), walk-behind mowers, string trimmers, edgers, backpack blowers, hedge trimmers, chainsaws, stump grinders, aerators, dethatchers, spreaders, and sprayers. For current guidance, see IRS Publication 535 (Business Expenses).

Vehicles: Work trucks over 6,000 lbs GVWR (Ford F-150/F-250/F-350, Chevy Silverado/Colorado, RAM 1500/2500/3500, Toyota Tundra) can be fully expensed under Section 179 with no luxury auto cap. The vehicle must be used more than 50% for business. For vehicles under 6,000 lbs, the luxury auto depreciation limits apply (first-year bonus depreciation deduction up to $20,200 for passenger automobiles placed in service in 2024).

Trailers: Enclosed and open trailers for hauling equipment are fully deductible through Section 179 or bonus depreciation. A $10,000 equipment trailer is written off in Year 1.

Attachments and accessories: Snow plows, salt spreaders, skid steer attachments, and other equipment that extends the landscaping business into seasonal services (snow removal, hardscaping) are deductible.

What about crew costs?

Employee wages: Wages paid to crew members are deductible, and the employer’s share of FICA (7.65%) and FUTA (0.6%) is also deductible. Workers’ comp insurance (required in most states for employees doing manual labor) is deductible.

Subcontractors: Payments to subcontractors (day laborers paid as independent contractors, specialized crews for hardscaping or tree work) are deductible. The landscaping company must issue a 1099-NEC for any subcontractor paid $600 or more in a calendar year.

The employee vs. independent contractor classification is heavily scrutinized in landscaping. The IRS and state agencies frequently audit landscaping companies that classify workers as 1099 contractors to avoid payroll taxes and workers’ comp. If the company controls the worker’s schedule, provides equipment, assigns specific jobs, and supervises the work, the worker is likely an employee.

What about the vehicle deduction?

Landscaping businesses use vehicles constantly. The deduction depends on the vehicle’s weight and the method chosen:

Heavy vehicles (over 6,000 lbs GVWR): Full Section 179 expensing in Year 1, no luxury auto cap. A $55,000 F-350 used 100% for business: $55,000 deduction in Year 1.

Light vehicles (under 6,000 lbs): Subject to luxury auto limits. With bonus depreciation, the first-year deduction is $20,200 (2024). The remaining cost is depreciated over subsequent years.

Standard mileage rate: 67 cents/mile for 2024. Track all business miles (driving to job sites, picking up supplies, towing equipment). This method is simpler but may produce a lower deduction than the actual expense method for heavy-use vehicles.

Actual expense method: Deduct the business-use percentage of all vehicle costs (fuel, insurance, repairs, tires, depreciation). A truck driven 30,000 miles/year with 90% business use and $15,000 in total costs: $13,500 deduction (plus depreciation on the truck).

For landscaping companies with multiple trucks and trailers, the actual expense method combined with Section 179 on the vehicle purchase price almost always produces the larger deduction.

Is landscaping an SSTB?

No. Landscaping is a trade that involves physical labor and the delivery of tangible services. It is not a specified service trade or business under IRC 199A. The full 20% QBI deduction is available at all income levels.

A landscaping company earning $300,000 in K-1 income (through an S-Corp) qualifies for a $60,000 QBI deduction, saving approximately $22,200 in income tax at the 37% bracket. This deduction would be partially or fully phased out if landscaping were an SSTB.

Related guides:

• Landscaping Tax Deductions: Mower, Truck, Equipment, and Material Expenses

• Landscaping entity structure: LLC, S-Corp, or sole proprietorship, how the S-Corp election and QBI deduction work for landscaping businesses

• Cleaning business tax deductions, deductions for another crew-based service business with similar equipment, vehicle, and worker-classification considerations

• Retirement plans for landscaping business owners, Solo 401(k), SEP, and how crew size affects plan choice and contribution limits

• Equipment financing and Section 179 deductions for landscaping businesses

• Employee vs. contractor classification for landscaping crews

• Snow removal as a landscaping add-on: tax treatment, equipment deductions, and seasonal planning

This guide is general information, not tax advice for your specific situation. Which points apply, and how, depends on your facts.