Foundation Repair Business Deductions and Equipment Write-Offs

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

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

Foundation repair is a high-ticket, specialized trade. The average residential job runs $5,000-$15,000, and commercial projects can exceed $100,000. Materials typically cost 25-35% of revenue (steel piers, helical piles, concrete, polyurethane foam), with the balance covering labor, equipment, and profit. The equipment investment is significant: hydraulic pier driving systems, concrete pumps, mini excavators, and specialized injection equipment. From a tax perspective, foundation repair is NOT a specified service trade or business (SSTB), so the full QBI deduction under IRC 199A applies at all income levels.

✓Key takeaway

Major deduction categories for foundation repair businesses:

Heavy equipment:

Hydraulic pier driving system: $15,000-$50,000 (the core revenue tool)
Mini excavator: $30,000-$80,000 (5-year MACRS, bonus depreciation eligible)
Concrete pump (small line pump): $20,000-$60,000
Skid steer loader: $25,000-$60,000
Polyurethane foam injection rig: $10,000-$30,000
Helical pile driver attachment: $5,000-$15,000
Compressor (pneumatic tools): $2,000-$10,000
Concrete mixer (portable): $1,000-$5,000

Vehicles:

Service trucks (heavy duty): $40,000-$70,000 each
Flatbed truck for equipment transport: $40,000-$80,000
Equipment trailer: $5,000-$20,000
Dump trailer: $5,000-$15,000

Materials (cost of goods sold per project):

Steel push piers: $150-$400 per pier (10-25 piers per job)
Helical piles: $200-$500 per pile
Polyurethane foam: $300-$1,000 per job
Concrete (for caps, patching): $100-$500 per job
Epoxy crack injection materials: $50-$200 per crack
Waterproofing membrane and drainage materials: $500-$3,000 per job
Carbon fiber straps: $200-$500 per strap

Specialized tools:

Laser level system: $500-$2,000
Hydraulic jacks (bottle and ram): $200-$1,000 each
Concrete cutting saws: $500-$2,000
Rotary hammer drills: $300-$1,000
Transit/builder’s level: $200-$800
Soil testing equipment: $500-$3,000
Crack monitoring gauges: $20-$50 each

Insurance (high premiums due to structural work):

General liability: $3,000-$8,000/year (higher than most trades due to structural risk)
Workers’ compensation (7-12% of payroll)
Commercial auto: $3,000-$8,000/year
Professional liability (E&O): $1,000-$3,000/year
Inland marine: $1,000-$3,000/year
Umbrella: $1,000-$5,000/year

Licensing and engineering:

Contractor license: $200-$1,000/year
Structural engineer consultations (per project): $500-$2,000 per report
Continuing education: $200-$500/year
Industry certifications (Ram Jack, Supportworks franchise fees if applicable): varies

How does the equipment investment affect taxes?

Hypothetical example

Round numbers. A foundation repair company (S-Corp) completes 80 jobs per year averaging $10,000 each.

Year 1 financials:

Revenue: $800,000
Materials (30%): $240,000
Labor (4 crew members, $45,000 each): $180,000
Owner salary (W-2): $70,000
Employer payroll taxes on all W-2s: $35,000
Insurance (GL + WC + auto): $25,000
Overhead (office, marketing, phone): $30,000
Total expenses before depreciation: $580,000

Year 1 equipment purchases:

Equipment	Cost
Hydraulic pier system	$35,000
Mini excavator	$60,000
Concrete pump	$40,000
Two service trucks	$120,000
Equipment trailer	$12,000
Tool package	$10,000
Injection rig	$20,000
Total	$297,000

S-Corp tax calculation:

Revenue: $800,000
Expenses: $580,000
Equipment depreciation (100% bonus): $297,000
S-Corp net loss: ($77,000)

The loss passes through to the owner’s personal return, offsetting other income. If the owner has no other income, the excess loss creates a net operating loss (NOL) carryforward.

Year 2 (no major equipment purchases):

Revenue: $900,000 (growth)
Expenses: $610,000 (higher labor from adding a crew member)
Depreciation: $5,000 (small tools only)
S-Corp net income: $285,000
Owner salary: $75,000
K-1 distribution: $210,000

Owner’s personal tax:

W-2 income tax + FICA: approximately $18,000
K-1 income tax (no SE tax on S-Corp K-1): approximately $42,000
QBI deduction (20% x $210,000 = $42,000, capped at 50% of W-2 wages): saves approximately $10,000
Total Year 2 tax: approximately $50,000

Why the S-Corp structure matters: if this were a sole proprietorship, the $210,000 in K-1 income would be subject to SE tax (approximately $20,000 additional). The S-Corp saves approximately $20,000/year in SE tax on the income above the reasonable salary.

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

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Cite this page

Yarik Yarosh, CPA. "Foundation Repair Business Deductions and Equipment Write-Offs." Blue Cloud CPA, September 5, 2026. https://bluecloudcpa.com/guides/foundation-repair-deductions-equipment

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