Industry Guide
Tax guidance for construction professionals.
General contractors, subs, and tradespeople — tools, mileage, materials, and 1099 workers all matter at tax time.
Who this is for
Built for construction
For self-employed contractors, tradespeople, and small construction companies filing Schedule C or as a pass-through entity.
Common income sources
- Contract labor income (1099-NEC)
- Progress payments on projects
- Change-order billings
- Materials markup
Commonly considered expense categories
- Tools, equipment, and safety gear
- Vehicle and trailer expenses
- Subcontractor payments
- Job-site supplies and materials
- Insurance, bonding, and licenses
May be deductible if eligible and properly documented. Rules vary — verify with a professional.
Recordkeeping
Recordkeeping checklist
- Signed contracts and invoices
- 1099-NEC copies for subs paid over the threshold
- Job-cost tracking
- Vehicle mileage logs
Watch outs
Common mistakes to avoid
- Not issuing 1099s to subcontractors when required
- Expensing large equipment instead of considering depreciation options
- Missing sales tax on materials
- Cash jobs going untracked
FAQ
Frequently asked questions
Industry guides are general educational information for construction and do not constitute tax advice. Rules change often and personal circumstances vary — please consult a qualified tax professional.
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