Operating a coin laundry offers consistent income, yet, as with any small venture, it entails its own expenses.
Realizing which expenses qualify for deduction can greatly influence the money you keep at year‑end.
This guide shows you the typical deductible costs for a coin laundry, how to monitor them, and the applicable tax regulations.
INCOME AND EXPENSES OVERVIEW
Your taxable income equals your gross revenue minus the total deductible expenses.
Gross revenue captures every dollar from coin and card payments, prepaid memberships, and supplementary services such as detergent sales or dry‑cleaning pick‑ups.
Deductible expenses are those considered ordinary in the sector and necessary for operating your business.
KEY DEDUCTIBLE EXPENSE CATEGORIES

1. Equipment and Machinery
   

• Buying or leasing washers, dryers, coin acceptors, and vending machines

• Cost of installing or upgrading automatic payment systems
• Installation labor expenses
• Fuel or mileage expenses for delivering laundry supplies
Depreciation is usually the primary method of deduction for large equipment.
You can use the Modified Accelerated Cost Recovery System (MACRS) for 5‑ or 7‑year property classes, or you can elect Section 179 expensing to deduct the full cost in the year of purchase (subject to limits).

1. Utilities
   

• Electricity and gas that run the machines

• Water and sewage expenses 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.

1. Repairs and Maintenance
   

• Routine service contracts for washers and dryers

• Part replacements such as belts, bearings, or control panels
• Small renovations that maintain building safety and functionality
Repair costs extending equipment life are deductible immediately, while major upgrades adding new features become capital expenditures and are depreciated.

1. Building and Lease Costs
   

• Rent or lease costs for the commercial premises

• Property taxes, insurance, and security services associated with the location
• Improvements to the leasehold including shelving, lighting, or tile work
Lease payments are fully deductible, while improvements that raise property value are depreciated either over the lease term or the property’s life, based on your method.

1. Consumables and Supplies
   

• Detergent, bleach, fabric softener, and dryer sheets

• Coin or card machine supplies such as change or receipt paper
• Cleaning supplies used on the premises
These costs are standard operating expenses and fully deductible; keep receipts and log usage.

1. Labor and Payroll
   

• Pay for employees who monitor machines, clean the facility, or provide customer service

• Payroll taxes, unemployment insurance, and workers’ compensation
• Benefits for employees like health insurance premiums or retirement contributions
Payroll costs are fully deductible. Use payroll software or a professional payroll service to ensure accurate reporting.

1. Marketing and Advertising
   

• Flyers, signage, and online ads

• Promotional events and loyalty programs
• Website maintenance and domain fees
Advertising costs are fully deductible if they directly target customer attraction.

1. Professional Services
   

• Accounting and tax prep fees

• Legal advice for zoning or licensing matters
• Business licensing and permit fees
These are ordinary business costs and are fully deductible.

1. Insurance
   

• General liability insurance

• Property and casualty protection
• Equipment coverage for washers and dryers
Premiums are fully deductible; retain payment proof and coverage statements.

1. Miscellaneous
   

• Parking costs and tolls for delivery vehicles

• Fees for membership or subscriptions to industry associations
• Cost of a mobile app or loyalty program platform
As long as the expense is related to the business, it is deductible.
RECORD‑KEEPING BEST PRACTICES
Accurate records are the backbone of any deduction strategy. Here are a few tips to keep your documentation in order:
• Use a dedicated bank account for the business to streamline tracking of revenue and expenses.
• Use small‑business accounting software with built‑in categories for laundromat expenses.
• Store receipts, invoices, and bank statements for at least seven years because the IRS can audit within that timeframe.
• Log mileage if you use a vehicle for business activities.
• Maintain a detailed fixed‑asset register for depreciation, noting purchase dates, cost, and method.
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.
• Alternative depreciation expense (ADE) or bonus depreciation can accelerate deductions for particular property classes.
• On a cash basis, expenses are deducted upon payment, yet depreciation must still be recorded.
• 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." – Since they are direct machine operating costs, 法人 税金対策 問い合わせ utilities are fully deductible.
3. "I can deduct the cost of a new computer only if I use it for marketing." – If the computer is used primarily for business administration, it is deductible. If you use it for personal tasks, only the business portion is deductible.
FINAL THOUGHTS
A coin laundromat can be profitable if you control costs well and utilize available tax deductions.
When you classify expenses accurately, keep meticulous records, and stay current with tax law changes, your after‑tax profit will increase.
If you’re uncertain about how to apply specific deductions or depreciation schedules, consider consulting a CPA who specializes in small business or hospitality tax planning.
They can assist in navigating complexities and make sure you don’t leave money on the table.