Bookkeeping · 5 min read
Contractor Tax Deductions: What Builders Should Track
Contractor tax deductions can help construction businesses reduce taxable income when expenses are properly documented. Contractors should track business expenses throughout the year instead of waiting until tax season.
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Common contractor tax deductions may include:
- Materials
- Tools
- Equipment
- Vehicle expenses
- Fuel
- Insurance
- Subcontractor payments
- Office supplies
- Software
- Phone and internet
- Marketing
- Licenses and permits
- Training
- Professional fees
- Payroll costs
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Some expenses may need to be depreciated instead of deducted immediately, especially larger equipment purchases.
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Contractors should keep receipts, invoices, mileage logs, bank records, and project documentation.
