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 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 is calculated by subtracting your total deductible expenses from your gross revenue.
Gross revenue consists of all cash from coin and card payments, prepaid memberships, and extra services like 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
   

• Purchase or lease of washers, dryers, coin acceptors, and vending machines

• Fees for installing or upgrading automated payment systems
• Labor costs associated with installation
• Mileage or fuel for delivery of laundry supplies
Large equipment deductions are primarily handled through depreciation.
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).

1. Utilities
   

• Electricity and gas powering the 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.

1. Repairs and Maintenance
   

• Standard service agreements for washers and dryers

• Part replacements such as belts, bearings, or control panels
• Minor upgrades that preserve 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.

1. Building and Lease Costs
   

• Rent or lease payments for the commercial space

• Property taxes, insurance, and security services tied to the location
• Leasehold improvements such as shelving, lighting, or tile work
All lease payments are deductible; enhancements that boost property value are depreciated across the lease term or the property’s useful life, per the chosen accounting method.

1. 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 items are ordinary operating expenses, fully deductible, and you should retain receipts and track usage.

1. 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.

1. Marketing and Advertising
   

• Flyers, signage, and digital ads

• Promotional events and loyalty programs
• Website maintenance and domain costs
Ads costs are fully deductible provided they directly aim to attract customers.

1. Professional Services
   

• Accounting and tax preparation costs

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

1. Insurance
   

• General liability insurance

• Property and casualty insurance
• Equipment insurance for washers and dryers
Premiums are fully deductible. Make sure you keep proof of payment and a statement of coverage.

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
Provided the expense relates 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:
• Open a dedicated business bank account to simplify revenue and expense tracking.
• 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.
• Maintain a mileage log if you use a vehicle for business purposes.
• Maintain a detailed fixed‑asset register for depreciation, noting purchase dates, cost, and 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.
• ADE or bonus depreciation may let you speed up deductions for specific 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, 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 may prove lucrative when costs are managed efficiently and tax deductions are leveraged.
When you classify expenses accurately, keep meticulous records, 節税対策 無料相談 and stay current with tax law changes, your after‑tax profit will increase.
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.