Landscaping costs can be deducted in the determination of net business income, even if they involve items that would normally be considered capital assets.

Question

Quizplus · Accepted Answer

Landscaping expenses incurred for the purpose of maintaining a business property can be deducted as an operating expense, which would reduce the net business income. This deduction is allowed even if the expenses relate to items that would typically be considered capital assets, such as trees, shrubs, or retaining walls, as long as they are not considered improvements to the property. However, if the landscaping expenses result in an improvement to the property, they may need to be depreciated over time as a capital asset.

Landscaping Costs Can Be Deducted in the Determination of Net