Operating a coin laundry offers consistent income, yet, as with any small venture, it entails its own expenses.
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
To determine taxable income, subtract total deductible expenses from gross revenue.
Gross revenue captures every dollar from coin and card payments, prepaid memberships, and supplementary 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

• Cost of installing or upgrading automatic payment systems
• Installation labor expenses
• Mileage and fuel costs for supplying laundry items
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 fees 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

• 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.

1. Building and Lease Costs
   

• Rent or lease costs for the commercial premises

• Property taxes, insurance, and security services associated with the location
• Leasehold improvements such as shelving, lighting, 法人 税金対策 問い合わせ 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

• Supplies for coin or card machines like change or receipt paper
• Cleaning materials for the premises
These are ordinary operating expenses and are fully deductible. Retain receipts and keep a log of usage.

1. Labor and Payroll
   

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

• Payroll taxes, unemployment insurance, and workers’ compensation
• Employee benefits including 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 digital ads

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

1. Professional Services
   

• Accounting and tax prep fees

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

1. Insurance
   

• 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 and toll fees for delivery vehicles

• Association membership or subscription fees
• Cost of a mobile app or loyalty 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.
• Employ accounting software designed for small businesses; most include laundromat expense categories.
• Store receipts, invoices, and bank statements for at least seven years because the IRS can audit within that timeframe.
• Keep a mileage log when operating a vehicle for business use.
• 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.
• ADE or bonus depreciation may let you speed up deductions for specific property classes.
• Cash‑basis taxpayers deduct expenses when paid, but depreciation still applies.
• A home‑based laundry might qualify for a home office deduction, yet only the exclusive and regular business portion of your home is deductible.
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." – A computer mainly used for business administration is deductible; personal use limits the deduction to the business share.
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 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 help you navigate the complexities and ensure you’re not leaving money on the table.