Nor would most existing property renovations. However, some could be eligible. Napolitano explains, "For the customer who asks a contractor to come in and do some landscaping to his front yard, the Domestic Production Activities Deduction would not apply. But for the customer who just bought a house, and wants to substantially renovate the entire house, including the landscaping, the project could qualify."

Here's one more thing to consider: The renovation has to "add life to" and "materially increase the value of" the property. What types of landscaping work would fall into this category? That's a good question, because Napolitano says getting examples of capital improvements from the IRS can be difficult. Furthermore, rules and tax codes often differ from state to state.

As a starting point, you can look to what the state of New Jersey classifies as capital improvements-and ask your accountant if they apply to your state's tax code. Some of the examples New Jersey provides are:

• Seeding
• Sodding
• Grass plugging on new lawns
• Planting trees, shrubs, hedges, plants, etc.
• Clearing and filling land associated with the above; also includes tree stump removal
• Installation of a new fence
• Installation of low-voltage lighting
• Installation of a pond
• Installation of an underground sprinkler system
• Hardscaping, such as a paver patio, deck, walkway, driveway, swimming pool or retaining wall

What you should do?
As you can see, like most things involving the IRS, determining eligibility for this deduction can get a bit tricky. So, first and foremost, get with your accountant to talk about the installation work you've performed this year.