28 Tax Write-Offs for Construction Contractors
NAICS business codeYour NAICS business code is a six-digit string of numbers that shows the type of work your business does. NAICS stands for North American Industry Classification System. When you do your taxes, you'll enter it in Box B of your Schedule C.236200
Reviewed bya tax professionalThis content has been reviewed by an Enrolled Agent (EA) with the IRS — the highest credential awarded by the agency. Enrolled Agents are empowered to represent all taxpayers before the IRS, on all types of tax-related matters. Accountants who earn this certification have passed a comprehensive three-part exam on individual and business tax returns. To maintain EA status, they must stay up to date in the field by completing 72 hours of continuing education every three years.Construction contractors know that a solid foundation is crucial to building a sound structure. But too often, even the best craftsmen forget to apply the same care to their taxes.
One of the best ways to reduce the weight burden during tax time is to make sure you claim all your everyday sort of business expenses on your return. By leaving out this extra material, you’ll build a financial framework that is strong enough to last a lifetime!
Software for CRM, lead generation, or email marketing is a write-off.
Legal fees paid to set up your business or draw up paperwork are deductible.
Software you use for invoicing, tracking expenses, creating timesheets, and so on is deductible.
Coaching, seminars, or workshops used to maintain your work-related skills can be written off.
Write off the fees you pay to contract labor to help you complete projects.
Ad campaigns on Google, Meta, TikTok, and more are all deductible on your taxes.
If you belong to a union, go ahead and write off your dues.
Deduct any gear you and your team need for safety on the job, like steel-toed boots and hard hats.
If you take courses to learn new skills as a contractor, you can write off what you pay.
Fees to get a commercial license to operate heavy machinery and vehicles are deductible.
Heavy machinery and small tools used to complete projects are considered tax write-offs.
If you buy a phone or laptop and use it for work, it's partially deductible.
If you drive for work ...
If your work as a construction contractor finds you on the road, whether you're driving to a job site, picking up equipment, or meeting with a client, keep in mind that you can write off a portion of your expenses on things like fuel and car maintenance.
Parking for a meeting downtown, or any other work trip, is tax-deductible!
A toll while driving to or from a work destination is tax-deductible!
If you buy a new car, you can write off part of the cost every year for five years.
Flashlights, tire iron, duct tape, and other tools you may need in your vehicle are deductible.
Car insurance monthly fees, registration, even roadside assistance are partially deductible.
Oil changes, repairs, and regular checkups are all tax-deductible if you drive for work.
If you discuss work at a restaurant ...
The IRS gets that a construction contractor's job isn't restricted to construction sites. You might grab dinner with prospective clients or fellow construction contractors who want to refer you for a job. These both count as business meals and you can write the costs off on your taxes.
If you discuss work with a coworker, mentor, client, or prospective client, it's a write-off!
If you leave town for work ...
Out-of-town work events like trade shows or industry conferences come with associated travel costs that you can write off on your taxes.
Planes, trains, and car rentals are all work-related travel costs that can be written off.
When you travel for work, lodging expenses such as hotel rooms or Airbnb are write-offs.
When you're traveling for work, all meals are tax-deductible. Even takeout!
If you work from home ...
If you work from home on client development, lead generation, industry research, or paperwork and finance management, you can deduct home office expenses from your taxes.
A desk, chairs, lamps, and other home office necessities are all tax write-offs.
You can write off up to $2,500 for individual repairs to your property.
Gotta keep the lights on in your home office! A portion of your electricity bill counts.
Whether it's rental or homeowners insurance, you can write off a portion through your home office deduction.
It'd be hard to work in an office without running water, huh? Your water bill counts.
Your Comcast bill is a tax write-off. You need internet to do your job!
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