How to Deduct Pest Control Costs on Your 1099

If you own a home office, rental property or business, chances are you’ve had to deal with the 1099 reporting requirement. Essentially, the IRS requires that you send out a 1099 to any vendor that gets paid $600 or more during a calendar year for non-employee compensation.

Pest control falls under this category.

Home Office

If you use part of your home as a home office, you may be eligible to deduct the costs of pest control. The IRS designates these expenses as indirect and classifies them based on labor and square footage, separating the amount spent on your home office versus your personal living space.

If you own income property or work as a contractor, you may also be eligible to deduct pest control services from your taxes. The IRS defines these services as ordinary and necessary expenses required to manage or maintain your property. In the case of rental properties, these expenses can be deductible as long as they’re used for the purpose of renting to others.

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Rental Property

If you own rental properties and use them for business purposes, you can deduct the cost of pest control on your taxes. The IRS classifies this expense as ordinary and necessary, which means that it is required to maintain your property.

If you are transferring ownership of real estate, the transferee will require you to submit a copy of a structural pest control inspection report. This must be done as soon as practical prior to the transfer of title.

Business

Depending on how you use your home, own rental property or run a business, pest control may be eligible for tax deductions. It’s always best to check with a tax professional, but PCO Bookkeepers, an accounting firm that works with pest control companies, has found that the costs can be deducted in the year they are paid if you are using your home as a home office or you own rental properties. They can also be deducted under maintenance if you own a business.

Lessen is a real estate services startup that reduces paperwork, next-day e-payments and maintenance expenses for property managers.

Other

In addition to general business expenses, such as advertising and marketing costs, professional fees, and employee salaries, you can deduct pest control services on your tax return as ordinary and necessary maintenance. Always consult your accountant or tax advisor for additional information about how to best optimize your deductions. Lessen makes pest control work order management easy, with automated invoice reminders that save you time from chasing payment. Lessen also digitizes your workflow with self-service customer access, templates, status tracking and history, estimates, and e-payments. Schedule a demo to learn how Lessen can help you grow your pest control company with automated data collection and insights into your business.

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