laundry deduction?

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Permalink Reply by Daniel Cohen on September 19, 2011 at 8:20am

What is the situation? I have a washer dryer in the clinic. Electric is all deducted as utility. The washer dryer was deducted as equipment, detergent is deducted in supplies. If you use a service or coin laundry it is taken as total fee. If you do laundry at home it is part of home office deductions of % of utilities and space. Why do you need to figure the laundry? I am not sure what it is you are looking for.

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Permalink Reply by Kelli Boylen on September 19, 2011 at 8:33am

I take my linens with me and do the laundry at home. I do not have massage office space in my home, but rather am using my personal washer and dryer to do loads of "massage linens only" washing and drying.

I am just starting out and am tracking my own income/ expenses/ deductions, but do not know what amount to use per load.

Thanks!

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Permalink Reply by Daniel Cohen on September 19, 2011 at 8:54am

I would suggest using the amount per load that the nearest laundromat charges. Keep separate detergent, fabric softener, stain remover to use only for massage loads as an easy way to keep track of usage.

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Permalink Reply by Relax & Rejuvenate on September 19, 2011 at 12:43pm

You can't just "guestimate" this, unless you want big trouble come audit time -- heaven forbid.

 

if you do you own laundry at home, you can use the amount a commercial laundry would pay for this service -- but you actually have to write yourself and expense check from your business account to pay yourself for this service. Treat yourself as you would any other vendor.

 

If you just register the estimated expense but never pay it out, then your books will be out of balance.

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Permalink Reply by Daniel Cohen on September 21, 2011 at 7:32am

Tax deductions are not all on the books. Taxes and book keeping are not the same. It depends how many loads you are doing and if it is a minor or major expense. In a tax audit it is best to have a log book of laundry done and the commercial value. Since it is a necessary part of your business it can certainly be defended without a log book but it would make it easier and impress an auditor.

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Permalink Reply by Matthew Gibble on September 21, 2011 at 3:37pm

I have taken a line item laundry expense for the past ten years.  It used to be two dollars per client and then after attending AMTA national convention a few years ago and attending a business class there I was told with inflation I could take two and a half dollars.  In addition I expense out detergent, business in the home expense, etc.

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Permalink Reply by Kelli Boylen on September 21, 2011 at 8:25pm

Thank you everyone.

I am keeping separate entries in my "books" for expenses (things I pay out) versus deductions (mileage, donations, laundry).

I appreciate your input and would like to continue to hear from others about how they handle this - and what amounts they use.

:)

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