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, 確定申告 節税方法 問い合わせ 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
   

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

• Fees for installing or upgrading automated payment systems
• Installation labor expenses
• Fuel or mileage expenses for delivering laundry supplies
Large equipment deductions are primarily handled through depreciation.
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 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
   

• Regular maintenance contracts for washers and dryers

• Replacements of parts such as 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 linked to the location
• Leasehold improvements such as 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

• Supplies for coin or card machines like change or receipt paper
• Cleaning supplies 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 worker’s compensation
• 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 online ads

• Promotional events or loyalty programs
• Website upkeep and domain fees
Advertising expenses are fully deductible as long as they are directly related to attracting customers.

1. Professional Services
   

• Accounting and tax preparation fees

• 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. Make sure you keep proof of payment and a statement of coverage.

1. Miscellaneous
   

• Parking fees and tolls for delivery vehicles

• Membership or subscription fees for industry associations
• Expense for 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:
• 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.
• Maintain a mileage log if you use a vehicle for business purposes.
• Keep a thorough fixed‑asset register for depreciation, recording purchase dates, costs, and methods.
TAX RULES TO KEEP IN MIND
• Section 179 expensing caps the yearly deduction. In 2025, the cap is $1,160,000, tapering after $2,890,000 of equipment purchases.
• ADE or bonus depreciation may let you speed up deductions for specific 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 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." – They are a direct cost of operating the machines and 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 laundromat can be profitable if you control costs well and utilize available tax deductions.
Proper expense classification, detailed record‑keeping, and keeping abreast of tax law updates will 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 guide you through complexities and prevent you from leaving money on the table.