Is a Washing Machine a Business Expense? A Real Question From a Trades Client
I was on my way to the ski hill one morning when a client called me with a quick question. They run a plumbing company and wanted to check something before making a purchase.
They asked:
“Can I write off a washer and dryer as a business expense if it’s installed in my house?”
They deal with a lot of dirty materials every day. Towels, rags, overalls, and cloths that come back from job sites covered in grease, sewage, glue, and dirt. So before they bought the machines, they wanted to make sure it would qualify as a legitimate business expense. That’s always the right approach.
What Determines a Business Expense?
When it comes to business expenses, the key question is simple:
Is the expense primarily used for the business?
In most cases, it really comes down to being reasonable. If something is clearly used to support the operations of the business, it can often qualify as a deductible expense.
For this plumbing company, the washer and dryer were being used to clean work towels, rags, and uniforms every day. They explained that they run a load of laundry daily for business purposes. In that situation, the equipment is directly tied to the business. So yes, it can qualify.
Can Business Equipment Be Installed in Your Home?
A lot of business owners assume that if something is located in their home, it automatically becomes a personal expense. That’s not always the case.
Many business owners operate at least part of their business from home. In Canada, there are rules that allow certain home-based business expenses when equipment or space is used for business purposes.
If equipment installed in your home is used primarily for your business, it may still qualify as a business asset. The key is documenting the business use and being reasonable about how it is used.
How Equipment Like This Is Treated for Tax Purposes
In this case, the washer and dryer would not simply be expensed all at once. Instead, the equipment becomes a capital asset for the business.
That means:
- The purchase is recorded on the company’s balance sheet
- The asset is depreciated over time
- A portion of the cost is deducted each year through depreciation
This spreads the tax deduction over several years rather than taking the full amount immediately.
Why It’s Better to Ask Before Making the Purchase
One thing I always appreciate about this client is that they called before buying the equipment. A quick conversation can prevent mistakes and make sure purchases are structured correctly for tax and accounting purposes. Too often, business owners make decisions first and ask questions later.
When it comes to expenses, assets, and tax deductions, it’s always better to check first.
Supporting Business Owners Across Canada
We work closely with business owners across British Columbia and throughout Canada, including Alberta, Ontario, and Quebec.
Our clients reach out regularly with questions like this. Sometimes it’s about payroll. Sometimes it’s about expenses. Sometimes it’s about structuring a purchase correctly. We’re always happy to answer those questions quickly so business owners can make confident decisions.
If you’re not sure whether something qualifies as a business expense, it’s better to ask than guess.
Need Help With Business Expenses or Tax Planning?
If you’re unsure whether a purchase qualifies as a business expense, Kermode Accounting & Advisory can help.
We work with trades businesses, service companies, and growing businesses across Canada to make sure expenses, assets, and tax planning are handled properly. We’re always happy to answer questions before small decisions turn into bigger mistakes.