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 explains the usual deductible expenses for a coin laundry, methods to track them, and the relevant tax rules.
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.
Deductible expenses are those considered ordinary in the sector and necessary for operating your business.
KEY DEDUCTIBLE EXPENSE CATEGORIES

1. Equipment and Machinery
   

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

• Expense for installing or upgrading automated payment systems
• Labor costs associated with installation
• Mileage and fuel costs for supplying laundry items
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 powering the machines

• Water and sewage fees for laundry operations
• Heating or ventilation fees that keep the facility comfortable
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
• 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 tied to the location
• Improvements to the leasehold including 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

• Coin or card machine supplies including 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
   

• 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
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 or loyalty initiatives
• Website upkeep and domain fees
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
• Licensing and permit fees for business
These items are standard business costs and fully deductible.

1. Insurance
   

• General liability coverage

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

1. Miscellaneous
   

• Parking costs 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
Accurate records are the backbone of any deduction strategy. Here are a few tips to keep your documentation in order:
• Separate a dedicated bank account for the business so that revenue and expenses are easy to track.
• Employ accounting software designed for small businesses; most include laundromat expense categories.
• Maintain receipts, invoices, 法人 税金対策 問い合わせ and bank statements for a minimum of seven years, since the IRS can audit for that span.
• 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.
• 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." – The full purchase price cannot be deducted in the purchase year unless Section 179 or bonus depreciation applies; otherwise, equipment 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 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.
When unsure about applying deductions or depreciation schedules, seek 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.