Can You Deduct Snow Services in Minnesota?

As a property owner, you may wonder if you can deduct snow services in Minnesota. With almost six months of snow, it’s a valid question. While keeping track of expenses is stressful, the payoff adds up. Make sure you are taxed the lowest amount possible by knowing more about snow removal deductions.

Snow Removal Deductions for Property Owners

For real estate rentals, there are a variety of eligible deductions that provide increased cash flow for property owners. That’s why knowing what expenses to keep track of is important. Mortgage interest, repairs, and even travel expenses can be profitable write-offs. But what about snow removal services?

Anything that is a necessary expense is deductible. According to the IRS, “Necessary expenses are those that are deemed appropriate, such as interest, taxes, advertising, maintenance, utilities, and insurance. You can deduct the costs of certain materials, supplies, repairs, and maintenance that you make to your rental property to keep your property in good operating condition.”

Money spent on general outdoor maintenance is tax-deductible. This includes snow removal services. Outdoor maintenance services are needed to keep your property up to code and livable. On the other hand, services like landscaping are considered an improvement to the property and would not be tax-deductible. (Improvement type services would fall under a capital investment category.)

Snow Removal Deductions for Home Offices

With the ever-increasing demand for home offices, it’s important to know what to deduct. Overall, a percentage of your home expenses are deductible with your home office. (Talk to your CPA for more information on what percentage works best for you.)

Similar to rental property owners, the necessary expenses are tax-deductible. This includes snow removal services in Minnesota. Keep in mind that if you use your home as a business, such as an in-home daycare, these services are also deductible.

Consult a Certified CPA for more Information

Before deducting snow removal services in Minnesota, make sure to consult a Certified Public Accountant (CPA). Snow removal deductions may vary depending on your specific situation. Owning a building, a rental home, or renting out a room will affect your deductions. Additionally, different regions have different tax requirements.

Keep all receipts, bills, and invoices for your CPA for a smooth process. With proper record keeping, your accountant will calculate the portion you can deduct from snow removal services.

What Falls Under the “Snow Removal Services” Umbrella?

Snow removal services can include:

• Snow plowing and snow blowing
• Sidewalk snow removal
• Rooftop snow removal
• Salting and de-icing services
• Ice control and ice dam control services

For a full list of snow removal services, visit our snow and ice removal services page to learn more.