A General Contractors Guide to Claiming Tax Deductions

General Contractors
December 11, 2019

The construction industry is booming and increased revenue also attracts IRS scrutiny. For many general contractors, tax season can be a stressful time to say the least. Fortunately, PlanHub can help you stay organized when filing your taxes. With tax season just around the corner, use this helpful list to save you time and money.

Tax Deductions You Can Claim as a General Contractor

  • Legal Fees – Payments for setting up an LLC are tax deductible.
  • Building Supplies and Small Tools – Pencils, rulers, hammers, and all items to get the job done can be written off.
  • Heavy Machinery and Large Tools – You can deduct the depreciation of heavy machinery, ladders, and all other large tools.
  • Labor Costs – People helping your business and in your payroll, this labor is tax deductible.
  • Online and Print Advertising – Money spent promoting your business on social sites and print media is tax deductible expenditure.
  • Safety Wear and Uniforms – If your team uses safety gear such as boots and helmets at your place of work, then all are tax deductible expenses.
  • Subscriptions – All subscriptions to any form of medium relevant to your construction business is also a tax deductible expense.
  • Car-related Expenses – If you drive to get supplies, meet clients, or even drive between sites, you can file gas costs as tax deductible expenses.
  • Working from Home – If you have a dedicated work station within your home, you can file claims for home office deductions.
  • Eating Out – If you conduct any work-related conversation with clients in a restaurant, the IRS views such as a tax deductible expense. Additionally, if you travel over 100 miles or 2 hours by car to meet a client or attend a construction site, you can file a tax deductible expense.

In order to claim any of the above tax write offs, it’s important to stay organized throughout your entire construction project, record all expenditures, and retain receipts. PlanHub’s online plan room can help you with proper organization and ensure all your future projects run as efficiently as possible. To learn more about PlanHub’s software and its benefits, contact us today!

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