Operating a coin laundry offers consistent income, yet, as with any small venture, it entails its own expenses.
Knowing which costs are deductible can significantly affect the amount you retain after taxes.
This guide walks you through the common deductible expenses that are specific to a coin laundry, how to track them, and the tax rules that apply.
INCOME AND EXPENSES OVERVIEW
Your taxable income equals your gross revenue minus the total deductible expenses.
Gross revenue consists of all cash from coin and card payments, prepaid memberships, and extra services like detergent sales or dry‑cleaning pick‑ups.
Expenses that are ordinary and necessary qualify for deduction.
KEY DEDUCTIBLE EXPENSE CATEGORIES
- Equipment and Machinery
• Purchase or lease of washers, dryers, coin acceptors, and vending machines
• Fees for installing or upgrading automated payment systems
• Related installation labor costs
• Mileage or fuel for delivery of laundry supplies
Depreciation is usually the primary method of deduction for large equipment.
You may apply MACRS for 5‑ or 7‑year property classes, or choose Section 179 expensing to deduct the entire cost in the acquisition year (subject to caps).
- Utilities
• Electricity and gas used to power machines
• Water and sewage charges for laundry operations
• Heating or ventilation expenses that ensure facility comfort
Utilities are fully deductible because they are an operating cost. Keep detailed utility bills and separate the portion used for the laundry from any other business or residential use.
- Repairs and Maintenance
• Routine service contracts for washers and dryers
• Replacing parts like belts, bearings, or control panels
• Small renovations that maintain building safety and functionality
Repairs that extend the life of equipment are deductible in the year incurred. Major upgrades that add new functionality are treated as capital expenditures and depreciated.
- Building and Lease Costs
• Lease or rent payments for the commercial space
• Property taxes, insurance, and security services associated with the location
• Leasehold improvements such as shelving, lighting, or tile work
Lease payments are fully deductible. Improvements that increase the property’s value are depreciated over the lease term or the property’s useful life, depending on your accounting method.
- Consumables and Supplies
• Detergent, bleach, fabric softener, and dryer sheets
• Supplies for coin or card machines like change or receipt paper
• Cleaning supplies used on the premises
These are ordinary operating expenses and are fully deductible. Retain receipts and keep a log of usage.
- Labor and Payroll
• Pay for employees who monitor machines, clean the facility, or provide customer service
• Payroll taxes, unemployment insurance, and workers’ comp
• Employee benefits such as health insurance premiums or retirement contributions
All payroll costs are deductible; use payroll software or a professional service to guarantee accurate reporting.
- Marketing and Advertising
• Flyers, signage, and web ads
• Promotional events or 確定申告 節税方法 問い合わせ loyalty programs
• Website upkeep and domain fees
Advertising costs are fully deductible if they directly target customer attraction.
- Professional Services
• Accounting and tax prep fees
• Legal consulting on zoning or licensing issues
• Licensing and permit fees for business
These items are standard business costs and fully deductible.
- Insurance
• Liability insurance
• Property and casualty coverage
• Equipment coverage for washers and dryers
Premiums are fully deductible; retain payment proof and coverage statements.
- Miscellaneous
• Parking fees and tolls for delivery vehicles
• Association membership or subscription fees
• Cost of a mobile app or loyalty program platform
Provided the expense relates to the business, it is deductible.
RECORD‑KEEPING BEST PRACTICES
Keeping accurate records underpins every deduction strategy. Below are some tips to stay organized:
• Open a dedicated business bank account to simplify revenue and expense tracking.
• Employ accounting software designed for small businesses; most include laundromat expense categories.
• Maintain receipts, invoices, and bank statements for a minimum of seven years, since the IRS can audit for that span.
• Log mileage if you use a vehicle for business activities.
• Keep a thorough fixed‑asset register for depreciation, recording purchase dates, costs, and methods.
TAX RULES TO KEEP IN MIND
• Section 179 expensing limits the amount you can deduct in a single year. For 2025, the limit is $1,160,000, phased out after $2,890,000 in total equipment purchases.
• The alternative depreciation expense (ADE) or bonus depreciation can allow you to accelerate deductions for certain property classes.
• If you are in a cash basis, you deduct expenses when you pay them, but you must still account for depreciation.
• For a home‑based laundry, you may qualify for the home office deduction, but the rules are strict; only the portion of your home used exclusively and regularly for business can be deducted.
COMMON MISUNDERSTANDS
1. “All equipment is fully deductible.” – You cannot write off the entire purchase cost in the acquisition year unless you use Section 179 or bonus depreciation; otherwise, it is depreciated over time.
2. “Utilities are not deductible because they’re utilities.” – Utilities are direct operating costs and fully deductible.
3. “I can deduct the cost of a new computer only if I use it for marketing.” – The computer is deductible when used for business administration; personal use means only the business portion counts.
FINAL THOUGHTS
A coin laundry may prove lucrative when costs are managed efficiently and tax deductions are leveraged.
By classifying your expenses correctly, maintaining meticulous records, and staying up to date with tax law changes, you’ll maximize your after‑tax profit.
If you’re unsure how to use specific deductions or depreciation schedules, consult a CPA experienced in small business or hospitality tax planning.
They can assist in navigating complexities and make sure you don’t leave money on the table.