Concrete and Masonry Business Tax Deductions: Equipment, Materials, and Vehicle

By Yarik Yarosh, CPA ·September 5, 2026 ·Updated October 4, 2026 ·4 min read

Written by Yarik Yarosh, CPA (US & Canada) September 5, 2026 · FL CPA license AC61704 · CPA Ontario

Concrete and masonry work is equipment-intensive. A flatwork contractor needs a truck, trailer, forms, finishing tools, and access to ready-mix. A block mason needs scaffolding, mixing equipment, saws, and hand tools. Materials (concrete, block, morite, rebar, mesh) represent 30-40% of revenue. The combination of expensive equipment and high material costs creates significant deductions, particularly in the early years when Section 179 accelerates the write-off of capital purchases.

✓Key takeaway

Major deductions for concrete and masonry businesses:

Materials (30-40% of revenue):

Ready-mix concrete: $150-$200/yard (delivered)
Concrete block (CMU): $1.50-$3.50/block
Mortar mix: $10-$15/bag (80 lb)
Rebar (#3, #4, #5): $0.50-$1.50/linear foot
Wire mesh: $50-$100/roll
Fiber mesh additive: $10-$15/bag
Expansion joint material: $20-$50/roll
Curing compound / sealer: $30-$80/5-gallon
Stamping/coloring materials (decorative): $50-$200/job
Under IRC 471(c), businesses with average receipts of $32 million or less (for 2026) can use cash method and deduct materials when purchased

Equipment:

Concrete mixer (portable): $2,000-$5,000
Concrete mixer (truck-mounted or volumetric): $40,000-$80,000
Power trowel (walk-behind): $2,000-$5,000
Power trowel (ride-on): $5,000-$15,000
Concrete saw (walk-behind): $1,500-$5,000
Handheld concrete saw: $500-$1,500
Concrete vibrator: $200-$1,000
Bull float and fresno set: $200-$600
Concrete stamps (full set): $1,000-$3,000
Laser level / transit: $300-$1,500
Forms (aluminum or steel): $500-$5,000 per set
Scaffolding system: $2,000-$10,000
Masonry saw (14” or 20”): $1,000-$3,000
Items under $2,500: de minimis safe harbor (deduct in full when purchased)
Items over $2,500: Section 179 or bonus depreciation (deduct in full in year of purchase)

Vehicles and trailers:

Dump truck: $40,000-$80,000 (over 6,000 lbs GVWR, full Section 179)
Flatbed truck: $35,000-$60,000 (over 6,000 lbs GVWR)
Skid steer / mini excavator: $25,000-$60,000 (Section 179)
Equipment trailer: $3,000-$10,000
Standard mileage NOT available for dump trucks (not designed for personal use)

Insurance (high for this trade):

General liability: $2,000-$5,000/year
Workers’ comp: 10-25% of payroll (concrete/masonry is high-risk)
Commercial auto: $2,000-$5,000/year
Equipment floater (inland marine): $500-$1,500/year
Umbrella: $1,000-$3,000/year

Other deductions:

Fuel: $5,000-$15,000/year (heavy equipment)
Disposal fees (concrete waste): $500-$2,000/year
Permits: $200-$1,000/year
Subcontractor payments (pumping, grading): varies
Marketing (Google Ads, yard signs): $1,000-$3,000/month
Software (bidding/estimating, accounting): $100-$300/month

What does a concrete contractor’s tax picture look like?

Hypothetical example

Round numbers. A sole proprietor flatwork concrete contractor. Revenue: $350,000 (100 jobs at $3,500 average). Single filer.

Revenue: $350,000

Deductions:

Materials (concrete, rebar, mesh, sealer): $120,000 (34% of revenue)
Labor (subcontractors, day labor on 1099): $60,000
Vehicle expenses (dump truck, fuel): $18,000
Equipment maintenance and repairs: $5,000
Insurance (GL + WC + auto + equipment): $15,000
Marketing: $12,000
Software and office: $3,000
Phone: $1,500
Permits and licenses: $1,500
Total deductions: $236,000

Net profit: $114,000

Self-employment tax: $114,000 x 92.35% x 15.3% = $16,101 Income tax:

SE deduction: $8,051
Standard deduction: $15,000
QBI deduction: $114,000 x 20% = $22,800
Taxable income: $114,000 - $8,051 - $15,000 - $22,800 = $68,149
Federal income tax: approximately $10,000
Total federal tax: $26,101 (effective rate: 22.9%)

Equipment purchase year (dump truck + skid steer): If the contractor buys a dump truck ($55,000) and skid steer ($35,000) in the same year:

Section 179: $90,000 x 100% business use = $90,000
Net profit after Section 179: $114,000 - $90,000 = $24,000
SE tax: $3,389 (computed on $24,000)
Income tax: approximately $0 (taxable income below standard deduction + QBI)
Total tax: $3,389
Tax saved by timing equipment purchases: $26,101 - $3,389 = $22,712

Year 2 (no large equipment purchases): the full $114,000 is taxable again. The equipment purchase shifted $22,712 of tax from Year 1 to nothing (the deduction is used up). In Year 2, the tax returns to approximately $26,000. The Section 179 deduction accelerated the timing, not the total lifetime deduction.

Illustrative numbers only, not a real client and not advice for your facts.

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Cite this page

Yarik Yarosh, CPA. "Concrete and Masonry Business Tax Deductions: Equipment, Materials, and Vehicle." Blue Cloud CPA, September 5, 2026, updated October 4, 2026. https://bluecloudcpa.com/guides/concrete-masonry-deductions-equipment

This guide is general information, not tax advice for your specific situation. Which points apply, and how, depends on your facts.