Contractors face unique tax challenges - from job costing and progress billing to heavy equipment depreciation, subcontractor compliance, and insurance deductions. Our CPA team specializes in helping general contractors, specialty trades, and construction LLCs minimize taxes and maximize profitability, serving contractors across all 50 states.
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Expert CPAs ready to help you save on contractor taxes.
Maximize deductions on excavators, trucks, tools, and heavy machinery using Section 179 and bonus depreciation
Track costs per project so you know exactly which jobs are profitable and can bid more accurately
Properly classify, pay, and file 1099s for subcontractors to avoid costly IRS and state penalties
Structure your contracting business to minimize self-employment tax, protect personal assets, and maximize deductions
Comprehensive tax preparation for general contractors, specialty trades, and construction LLCs with proper revenue recognition on long-term contracts (completed contract vs. percentage of completion methods)
Strategic depreciation on excavators, skid steers, dump trucks, work vehicles, power tools, and job site equipment using Section 179 and bonus depreciation
1099-NEC filing for subcontractors, W-2 payroll for employees, certified payroll for prevailing wage jobs, and worker classification compliance
Track materials, labor, subcontractor costs, and overhead by project for accurate profitability analysis and better bidding on future jobs
Set up and optimize your contracting business structure for liability protection, tax savings, and bonding capacity - LLC, S-Corp, or multi-entity setups for contractors with multiple trade licenses
Financial statement preparation for bonding applications, proper deduction of general liability, workers' comp, and commercial auto insurance premiums
Schedule a free call to discuss your contracting business, project types, and tax concerns with an experienced CPA.
We analyze your job costs, equipment assets, subcontractor relationships, and current tax structure to find savings.
Our CPAs build a customized tax strategy covering depreciation, entity structuring, subcontractor compliance, and cash flow management.
We provide year-round support with quarterly reviews, proactive tax planning, and preparation of all required returns.
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Contractors can deduct materials and supplies, subcontractor payments, equipment purchases and rentals, vehicle and fuel costs, tool purchases and repairs, general liability and workers' compensation insurance, bonding costs, licensing and permit fees, safety equipment, job site expenses, office costs, and professional services. We also identify often-missed deductions like home office use for contractors who run their business from home, and cell phone and internet expenses used for business.
You must collect a W-9 from every subcontractor before making the first payment. At year-end, you must issue a 1099-NEC to any non-corporate sub you paid $600 or more. Forms are due January 31 to both the sub and the IRS. The construction industry is heavily audited for worker misclassification - if you're providing tools, setting schedules, and directing how work is done, those workers may need to be W-2 employees. We help you maintain proper documentation and file all forms correctly.
Most contractors benefit from having at least an LLC for liability protection. Once your net income exceeds roughly $50,000-$70,000, electing S-Corp status often saves significant self-employment tax. With an S-Corp, you pay yourself a reasonable salary and take remaining profits as distributions that avoid the 15.3% self-employment tax. However, this requires running payroll and adds administrative costs. We analyze your specific situation including bonding requirements, licensing, and growth plans to recommend the best structure.
Yes. Work trucks over 6,000 lbs GVWR and heavy equipment like excavators, skid steers, and dump trucks can often be fully deducted in the year of purchase using Section 179 (up to the annual limit) or 100% bonus depreciation. For vehicles used for both personal and business purposes, only the business-use percentage is deductible. We help you structure equipment purchases for maximum tax benefit and maintain the mileage and usage logs needed to support your deductions.
Most small contractors (under $29 million average annual gross receipts) can use the cash method of accounting, which is simpler and often results in lower taxes since you only report income when received. Larger contractors may need to use the percentage-of-completion method for long-term contracts. We evaluate your contract types, business size, and tax situation to recommend the method that provides the best tax outcome while meeting IRS requirements.
Schedule your free consultation today. No obligation, no pressure - just honest answers from a licensed CPA who understands the construction industry.