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 walks you through the common deductible expenses that are specific to a coin laundry, how to track them, and the tax rules that apply.
INCOME AND EXPENSES OVERVIEW
Your taxable income equals your gross revenue minus the total deductible expenses.
Gross revenue includes every dollar you collect from coin and card payments, any prepaid memberships, and additional 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

• Fees for installing or upgrading automated payment systems
• Installation labor expenses
• Mileage or fuel for delivery of laundry supplies
Large equipment deductions are primarily handled through depreciation.
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 that run the machines

• Water and sewage charges for 法人 税金対策 問い合わせ laundry operations
• Heating or ventilation expenses that ensure facility comfort
Utilities are entirely deductible as operating expenses; maintain detailed bills and segregate laundry use from other activities.

1. Repairs and Maintenance
   

• Standard service agreements for washers and dryers

• Replacing parts like belts, bearings, or control panels
• Minor upgrades that preserve building safety and functionality
Repair costs extending equipment life are deductible immediately, while major upgrades adding new features become capital expenditures and are depreciated.

1. Building and Lease Costs
   

• Lease or rent payments for the commercial space

• Property taxes, insurance, and security services tied to the location
• Leasehold upgrades like shelving, lighting, or tile work
Lease payments are fully deductible. Improvements that increase the property’s value are depreciated over the lease term or the property’s useful life, depending on your 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 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’ comp
• Employee benefits such as health insurance premiums or retirement contributions
Payroll expenses are fully deductible; employ payroll software or a professional service for accurate reporting.

1. Marketing and Advertising
   

• Flyers, signage, and online 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 prep fees

• Legal consulting for zoning or licensing issues
• Business licensing and permit fees
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. Make sure you keep proof of payment and a statement of coverage.

1. Miscellaneous
   

• Parking costs and tolls for delivery vehicles

• Association membership or subscription fees
• Expense for a mobile app or loyalty program platform
Provided the expense relates to the business, it is deductible.
RECORD‑KEEPING BEST PRACTICES
Accurate record‑keeping is essential to any deduction plan. Here are several ways to keep your docs tidy:
• Use a dedicated bank account for the business to streamline tracking of revenue and expenses.
• Use accounting software tailored to small businesses; many have built‑in categories for laundromat expenses.
• Keep receipts, invoices, and bank statements for at least seven years, as the IRS may audit you up to that period.
• Log mileage if you use a vehicle for business activities.
• Keep a thorough fixed‑asset register for depreciation, recording purchase dates, costs, and methods.
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.
• 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." – 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." – 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.
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.