Is Garbage Disposal Tax Deductible?

This content has been reviewed and edited by an Investment Advisor Representative working for Global Predictions, an SEC-registered Investment Advisor.

Have you ever looked at your garbage disposal bill and thought, "Could I get some tax relief on this?" You’re not alone—this is a common question, and while the answer isn’t a simple yes or no, there are situations where it might apply. Let’s break it down in plain English, so you can feel confident about what applies to you.

Key Takeaways

• Garbage disposal services for personal use are generally not tax-deductible.
• Business-related garbage disposal expenses may qualify as deductions if they’re considered ordinary and necessary. However, tracking and documenting these expenses can sometimes require significant administrative effort, which might not always justify the deduction for smaller costs.
• Home office deductions might allow you to write off part of your garbage disposal expenses if they’re directly tied to business use.
• Good documentation and clear expense allocation are critical to claiming these deductions, but it’s also important to weigh the administrative effort required to track and maintain records for smaller expenses. For minor costs, the effort might not always justify the tax benefit.

When Garbage Disposal Is Not Tax-Deductible

Let’s start with the basics: for most people, garbage disposal is just part of everyday life—like water or electricity—and the IRS considers it a personal expense. Unless specifically allowed by tax law, personal expenses aren’t deductible. So, if you’re paying for regular household trash pickup, chances are it won’t help you at tax time.

Hypothetical Example: Imagine you’re paying $35 a month for garbage disposal at home. Since this is a personal service, you wouldn’t be able to deduct it on your taxes. That said, there are exceptions for certain situations, which we’ll explore next.

When Garbage Disposal May Be Tax-Deductible

Here’s where things get interesting. In some scenarios, garbage disposal costs might qualify for deductions—particularly if they’re tied to business operations or a home office. Let’s break down these possibilities:

1. Business Use

Do you run a business that generates a lot of waste, like a catering service or a landscaping company? If so, the costs of disposing of that waste could be deductible. The IRS says these expenses must be both ordinary (common in your industry) and necessary (helpful for your business).

Hypothetical Example: Sarah owns a bakery and pays $150 a month for commercial garbage disposal to handle food waste. Because this expense is directly tied to her business, she can claim it as a deduction.

2. Home Office Deduction

If you run a business from home and qualify for the IRS’s home office deduction, you may be able to deduct a portion of your garbage disposal expenses. The key is that the expense must be related to the portion of your home used exclusively for business.

3. Rental Properties

Landlords who pay for garbage disposal services for their rental properties can deduct these costs as operating expenses. However, for smaller rental properties, the administrative burden of tracking and documenting these expenses could outweigh the practical benefits of claiming them.

Hypothetical Example: Lisa owns a four-unit rental property and pays $80 per month for garbage disposal. Since this is part of maintaining her property, she can deduct the full amount on her Schedule E.

How to Claim Garbage Disposal Deductions

If you qualify to deduct garbage disposal expenses, here’s how to do it right:

1. Keep Detailed Records

Hold onto invoices, receipts, and any other documentation showing the cost and purpose of the service.

2. Allocate Costs Properly

If only part of the expense qualifies (like for a home office), calculate the percentage accurately and consistently.

3. Use the Correct Tax Form

• For business expenses: Report them on Schedule C (if you’re a sole proprietor) or your business’s tax return.
• For home office deductions: Use Form 8829 (Expenses for Business Use of Your Home).
• For rental properties: Include the expenses on Schedule E.

Common Mistakes to Avoid

1. Misclassifying Personal Expenses: Don’t try to claim deductions for personal garbage disposal—it’s a surefire way to attract IRS scrutiny. Additionally, overestimating deductions, even for legitimate business expenses, can raise red flags with the IRS, making accurate and conservative reporting key.
2. Lacking Documentation: Without clear records, you could lose deductions or face issues during an audit.
3. Incorrect Home Office Calculations: Be precise and make sure your percentage matches the square footage used exclusively for business.

FAQs

1. Are garbage disposal expenses for a vacation rental property deductible?

Yes, if the property is used as a rental and you’re paying for garbage disposal as part of its upkeep, the expense is deductible.

2. Can I deduct garbage disposal costs if I’m self-employed but don’t have a home office?

Only if the expenses are directly tied to your business operations. For example, if you run a catering business and pay for waste removal, those costs could qualify.

3. What if I mistakenly claim personal garbage disposal expenses?

If the IRS audits your return, you’ll need to repay the deduction amount along with possible penalties and interest.

4. Is there a minimum threshold for claiming business-related garbage disposal expenses?

No, but the costs should be significant enough to justify the effort of documentation and compliance.

5. Can I deduct shared expenses in a multi-use property?

Yes, but you’ll need to allocate the expense proportionally between personal and business use.