Because land does not depreciate, you cannot deduct anything for the value of land used in business.
You can deduct your out-of-pocket costs for setting up part of your yard as a show room, including materials and any labor that you pay for. These cost should be deducted on the business schedule C as business expenses, maybe under “advertising.” You can’t deduct anything for the value of your own or other people’ unpaid labor, only cost you actually pay.
also, if audited, the IRS will take a dim view of deducting personal expenses as if they were business expenses. So, you would need to show that you would not have had these expenses but for the business use. In other words, you would not have paid to make the yard look as nice if you were not a landscape contractor using it for advertising, And the only part of the cost you can deduct is the part that is in excess of your normal expenses to care for your property.
