Running a coin laundry can be a steady source of income, but like any small business, it comes with its own set of costs.
Understanding which expenses are deductible can make a big difference in how much you keep in your pocket at the end of the tax year.
This guide explains the usual deductible expenses for a coin laundry, methods to track them, and the relevant tax rules.
INCOME AND EXPENSES OVERVIEW
Your taxable income equals your gross revenue minus the total deductible expenses.
Gross revenue includes every dollar you collect from coin and card payments, any prepaid memberships, and additional services such as detergent sales or dry‑cleaning pick‑ups.
The expenses you can deduct are those that are ordinary (common in the industry) and necessary (helpful for running your business).
KEY DEDUCTIBLE EXPENSE CATEGORIES

1. Equipment and Machinery
   

• Acquiring or renting washers, dryers, coin acceptors, and vending machines

• Fees for installing or upgrading automated payment systems
• Installation labor expenses
• Mileage or fuel for delivery of laundry supplies
Depreciation is usually the primary method of deduction for large equipment.
The Modified Accelerated Cost Recovery System (MACRS) allows depreciation over 5‑ or 7‑year classes, or you may opt for Section 179 expensing to write off the full purchase price in the first year (within 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
Because utilities are operating costs, they are fully deductible. Keep detailed bills and isolate the laundry portion from other uses.

1. Repairs and Maintenance
   

• Routine service contracts for washers and dryers

• Replacing parts like belts, bearings, or control panels
• Minor upgrades that preserve building safety and functionality
Expenses for repairs that prolong equipment life are deductible in the year incurred; significant upgrades adding functionality are capitalized and depreciated.

1. 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.

1. Consumables and Supplies
   

• Detergent, bleach, fabric softener, and dryer sheets

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

1. Labor and Payroll
   

• Wages for employees who monitor machines, clean the facility, or handle customer service

• Payroll taxes, unemployment insurance, and workers’ comp
• Employee benefits such as 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 web ads

• Promotional events or loyalty initiatives
• Website maintenance and domain costs
Advertising expenses are fully deductible as long as they are directly related to attracting customers.

1. Professional Services
   

• Accounting and tax preparation costs

• Legal consulting on zoning or licensing issues
• Business licensing and permit fees
These costs are ordinary business expenses and fully deductible.

1. Insurance
   

• Liability insurance

• Property and casualty insurance
• 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
• Expense for a mobile app or loyalty program platform
As long as the expense is related 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.
• Use small‑business accounting software with built‑in categories for laundromat expenses.
• Keep receipts, invoices, and bank statements for at least seven years, as the IRS may audit you up to that period.
• Log mileage if you use a vehicle for business activities.
• For depreciation, keep a detailed fixed‑asset register that lists purchase dates, cost, and depreciation method.
TAX RULES TO KEEP IN MIND
• Section 179 expensing restricts the yearly deduction; for 2025, the cap is $1,160,000, phasing out after $2,890,000 of 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 法人 税金対策 問い合わせ depreciation.
• If you run a home‑based laundry, the home office deduction may apply, but only the area used exclusively and regularly for business is deductible.
COMMON MISUNDERSTANDS
1. "All equipment is fully deductible." – You can’t deduct the full purchase price in the year you buy it unless you qualify for Section 179 or bonus depreciation. Most equipment must be depreciated over time.
2. "Utilities are not deductible because they’re utilities." – Since they are direct machine operating costs, utilities are 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 can be a lucrative venture if you manage costs efficiently and take advantage of the tax deductions available.
When you classify expenses accurately, keep meticulous records, and stay current with tax law changes, your after‑tax profit will increase.
When unsure about applying deductions or depreciation schedules, seek a CPA who specializes in small business or hospitality tax planning.
They can help you navigate the complexities and ensure you’re not leaving money on the table.