Construction Tax Savings
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.
|Type||Deduction Description||Tax Form|
|Lead Generation Software||Software for CRM, lead generation, or email marketing is a write-off.||Sch. C - Box 18|
|Legal Fees||Legal fees paid to set up your business or draw up paperwork are deductible.||Sch. C - Box 17|
|Productivity Softare||Software you use for invoicing, tracking expenses, creating timesheets, and so on is deductible.||Sch. C - Box 18|
|Seminars & Workshops||Coaching, seminars, or workshops used to maintain your work-related skills can be written off.||Sch. C - Box 27a|
|Contract Labor||Write off the fees you pay to contract labor to help you complete projects.||Sch. C - Box 11|
|Online Advertising||Ad campaigns on Facebook, Google, Instagram, and more are all deductible on your taxes.||Sch. C - Box 8|
|Union Dues||If you belong to a union, go ahead and write off your dues.||Sch. C - Box 27a|
|Safety Gear & Uniforms||Deduct 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 Tuition||If you take courses to learn new skills as a contractor, you can write off what you pay.||Sch. C - Box 27a|
|Commercial License||Fees to get a commercial license to operate heavy machinery and vehicles are deductible.||Sch. C - Box 23|
|Machinery & Tools||Heavy machinery and small tools used to complete projects are considered tax write-offs.||Sch. C - Box 13|
|Phone, Laptop, Accessories||If buy a phone or laptop and use it for work, it's partially deductible.||Sch. C - Box 27a|
- Driving for Work -
|Parking||Parking for a meeting downtown, or any other work trip, is tax-deductible!||Sch. C - Box 27a|
|Tolls||A toll while driving to or from a work destination is tax-deductible!||Sch. C - Box 27a|
|Car Purchase & Depreciation||If you buy a new car, you can write off part of the cost every year for five years.||Sch. C - Box 13|
|Vehicle Tool Kit||Flashlights, tire iron, duct tape, and other tools you may need in your vehicle are deductible.||Sch. C - Box 22|
|Car Insurance & Registration||Car insurance monthly fees, registration, even roadside assistance are partially deductible.||Sch. C - Box 15|
|Car Maintenance||Oil changes, repairs, and regular checkups are all tax-deductible if you drive for work.||Sch. C - Box 9|
- Work Meetings -
|Business Meals||If you discuss work with a coworker, mentor, client, or prospective client, it's a write-off!||Sch. C - Box 24b|
- Traveling for Work -
|Transportation||Planes, trains, and car rentals are all work-related travel costs that can be written off.||Sch. C - Box 24a|
|Travel Lodging||When you travel for work, lodging expenses such as hotel rooms or Airbnb are write offs.||Sch. C - Box 24a|
|Meals While Traveling||When you're traveling for work, all meals are tax-deductible. Even takeout!||Sch. C - Box 24a|
- Working from Home -
|Home Office Furniture||A desk, chairs, lamps, and other home office necessities are all tax write-offs.||Sch. C - Box 18|
|Property Repairs||You can write off up to $2,500 for individual repairs to your property.||Sch. C - Box 21|
|Power Bill||Gotta keep the lights on in your home office! A portion of your electricity bill counts.||Form 8829|
|Property Insurance||Whether it's rental or homeowners insurance, you can write off a portion through your home office deduction.||Form 8829|
|Water Bill||It'd be hard to work in an office without running water, huh? You water bill counts.||Form 8829|
|Wi-Fi Bill||Your Comcast bill is a tax write-off. You need internet to do your job!||Sch. C - Box 25|