Construction Tax Savings

Construction Contractors

Why did you become a construction contractor?

It was probably because you enjoyed working outdoors and are skilled builder. We doubt it was because you enjoy filing your self-employment taxes. 😉

Luckily, workers like you can save money by organizing your business wisely and becoming aware of all your business deductions. You can save money on many expenses including the cost of tools and works supplies, or even the boots and other safety equipment you need on the jobsite.

Construction Contractors - NAICS Code: 236200

The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.

A construction contractor is a self-employed worker in the physical construction of the built environment and its infrastructure. . ~ Source Wikipedia

The most common tax deductions for construction contractors are listed below.

TypeDeduction DescriptionTax Form
Lead Generation SoftwareSoftware for CRM, lead generation, or email marketing is a write-off.Sch. C - Box 18
Legal FeesLegal fees paid to set up your business or draw up paperwork are deductible.Sch. C - Box 17
Productivity SoftareSoftware you use for invoicing, tracking expenses, creating timesheets, and so on is deductible.Sch. C - Box 18
Seminars & WorkshopsCoaching, seminars, or workshops used to maintain your work-related skills can be written off.Sch. C - Box 27a
Contract LaborWrite off the fees you pay to contract labor to help you complete projects.Sch. C - Box 11
Online AdvertisingAd campaigns on Facebook, Google, Instagram, and more are all deductible on your taxes.Sch. C - Box 8
Union DuesIf you belong to a union, go ahead and write off your dues.Sch. C - Box 27a
Safety Gear & UniformsDeduct any gear you and your team need for safety on the job, like steel-toed boots and hard hats.Sch. C - Box 27a
Trade School TuitionIf you take courses to learn new skills as a contractor, you can write off what you pay.Sch. C - Box 27a
Commercial LicenseFees to get a commercial license to operate heavy machinery and vehicles are deductible.Sch. C - Box 23
Machinery & ToolsHeavy machinery and small tools used to complete projects are considered tax write-offs.Sch. C - Box 13
Phone, Laptop, AccessoriesIf buy a phone or laptop and use it for work, it's partially deductible.Sch. C - Box 27a

- Driving for Work -

ParkingParking for a meeting downtown, or any other work trip, is tax-deductible!Sch. C - Box 27a
TollsA toll while driving to or from a work destination is tax-deductible!Sch. C - Box 27a
Car Purchase & DepreciationIf you buy a new car, you can write off part of the cost every year for five years.Sch. C - Box 13
Vehicle Tool KitFlashlights, tire iron, duct tape, and other tools you may need in your vehicle are deductible.Sch. C - Box 22
Car Insurance & RegistrationCar insurance monthly fees, registration, even roadside assistance are partially deductible.Sch. C - Box 15
Car MaintenanceOil changes, repairs, and regular checkups are all tax-deductible if you drive for work.Sch. C - Box 9

- Work Meetings -

Business MealsIf you discuss work with a coworker, mentor, client, or prospective client, it's a write-off!Sch. C - Box 24b

- Traveling for Work -

TransportationPlanes, trains, and car rentals are all work-related travel costs that can be written off.Sch. C - Box 24a
Travel LodgingWhen you travel for work, lodging expenses such as hotel rooms or Airbnb are write offs.Sch. C - Box 24a
Meals While TravelingWhen you're traveling for work, all meals are tax-deductible. Even takeout!Sch. C - Box 24a

- Working from Home -

Home Office FurnitureA desk, chairs, lamps, and other home office necessities are all tax write-offs.Sch. C - Box 18
Property RepairsYou can write off up to $2,500 for individual repairs to your property.Sch. C - Box 21
Power BillGotta keep the lights on in your home office! A portion of your electricity bill counts.Form 8829
Property InsuranceWhether it's rental or homeowners insurance, you can write off a portion through your home office deduction.Form 8829
Water BillIt'd be hard to work in an office without running water, huh? You water bill counts.Form 8829
Wi-Fi BillYour Comcast bill is a tax write-off. You need internet to do your job!Sch. C - Box 25
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