Common tax deductions for construction contractors include protective equipment, tools, building materials and transportation expenses. Keep reading to learn more about what construction contractors can deduct from their taxes.
Who Can Take Deductions in the Construction Industry?
These tax deductions only apply to construction contractors who are self-employed and thus using Schedule C (form 1040) for tax purposes. Construction employees who work for a company may be reimbursed by their employer for expenses pertaining to work.
As a contractor, it’s crucial that you track your business expenses when it comes time to file your tax forms. With the fiscal year ending and tax-filing season approaching, we want to help you understand what deductions you can claim to help decrease your tax bill. Below is a list of sixteen business expenses you can claim on your annual Schedule C tax return.
*Please note these were written based on the 2019 Schedule C form*
1. Advertising (line 8)
Businesses often use advertising to