Job costing, percentage of completion, retainage, bonding and insurance, prevailing wage, subcontractor 1099s, multi-state work, and sales tax on materials for construction, roofing, concrete, and solar contractors.
44 guides, each written by a CPA licensed in the US and Canada.
A GC who pays subcontractors $600 or more must file 1099-NEC. Here's the full compliance process: W-9 collection, TIN matching, deadlines, and penalties.
US TaxConcrete work is seasonal in most of the US (March-November). Revenue drops 70-90% in winter months. Seasonal income pattern for concrete/masonry: Typical.
US TaxConcrete businesses deduct ready-mix, rebar, forms, and finishing tools.
US TaxConcrete and masonry is NOT an SSTB under IRC 199A.
US TaxWhich accounting method a construction company must (or can) use on its tax return depends on contract length, gross receipts, and contract type.
US TaxSurety bond premiums (bid, performance, and payment bonds) are deductible as ordinary business expenses under IRC 162. They.
US TaxA contractor's guide to setting up construction bookkeeping: chart of accounts, cash vs. accrual method, job costing fundamentals, and common mistakes.
US TaxA contractor performs $80,000 of additional work on a project because the owner requested a scope change verbally. Covers key rules, filing requirements,.
US TaxFor most contractors whose profit runs well past what they'd have to pay a manager to do their job, the answer is an LLC that elects S-corp tax treatment.
US TaxConstruction income is lumpy. Here's how contractors calculate quarterly estimated taxes, meet the safe harbor, and avoid underpayment penalties.
US TaxA CPA's guide to the tax deductions available to construction contractors, from heavy equipment and Section 179 to subcontractor payments, insurance.
US TaxConstruction contractors face unique tax rules: percentage-of-completion, UNICAP on job costs, bonus depreciation, and the 20% QBI deduction.
US TaxContractors can write off equipment in year one: Section 179 up to $2,500,000 (2025 and 2026, indexed from 2027), or 100% bonus depreciation with no cap.
US TaxExcavators, dump trucks, pickups over 6,000 lbs: how contractors write off heavy equipment using Section 179, 100% bonus depreciation.
US TaxBond and insurance premiums are deductible under IRC 162, and the deduction lands when the premium is paid, cash or accrual.
US TaxJob costing is the foundation of construction accounting. How to track costs by project, what the IRS requires, and how it feeds percentage-of-completion.
US TaxOne job across the state line is enough. A crew on a job site is physical presence, and the federal shield most people have heard of, P.L. 86-272.
US TaxFederal and state prevailing wage laws require above-market pay and certified payroll on public projects. How Davis-Bacon works and the tax implications.
US TaxRetainage (the 5-10% holdback on each progress payment) creates accounting complexity, tax timing questions, and real cash flow pressure.
US TaxA worker who shows up at your job site every morning, uses your materials, and takes direction from your superintendent is an employee.
US TaxThe IRS common-law test, Section 530 safe harbor, IRC 3509 penalties. The IRS uses a three-factor common-law test (behavioral control, financial control.
US TaxSole prop, LLC, S-Corp, or C-Corp? The right entity structure for a contractor affects liability exposure, self-employment tax, the QBI deduction.
US TaxRoofing contractors face seasonal revenue concentration (60-70% from April through October) and must plan estimated tax payments around weather-dependent.
US TaxFoundation repair companies deduct hydraulic pier systems, concrete pumps, excavation equipment, helical piles, and polyurethane foam injection rigs.
US TaxFoundation repair businesses are moderately seasonal with spring and fall peaks when homeowners discover problems. Estimated tax planning for foundation.
US TaxFoundation repair businesses are NOT SSTBs. High revenue per job ($5,000-$15,000) means operators reach the S-Corp break-even quickly.
US TaxMost contractors run the business side from home. Here's how the home office deduction works for construction businesses, including which method saves more.
US TaxConstruction contractors who work across state lines face nexus triggers, income tax apportionment, multistate payroll taxes, and nonresident withholding.
US TaxThe percentage of completion method under IRC 460 determines when construction contractors recognize revenue on long-term contracts.
US TaxConstruction company owners can defer $70,000+ per year through the right retirement plan.
US TaxRoofing contractors (NOT SSTBs) qualify for the full 20% QBI deduction. Worker classification is the highest-risk compliance area.
US TaxRoofing businesses are NOT SSTBs, so the full QBI deduction applies at all income levels. Roofing tax profile: SSTB classification: NOT an SSTB -.
US TaxRoofing contractors can deduct materials, equipment (Section 179 on trucks, lifts, nail guns), workers' comp (20-40% of payroll), and crew wages.
US TaxRoofing has moderate seasonality (2-3x peak-to-trough in northern markets) with storm damage creating unpredictable revenue spikes.
US TaxRoofing deductions are dominated by materials (40-50% of revenue), making it the highest-material-cost trade. Roofing deductions by category: Materials.
US TaxSales tax on construction is a mess. Some states tax materials at purchase, others tax the installed price. Here's how it works and where the exemptions are.
US TaxSiding installers deduct brake machines ($3,000-$15,000), scaffolding systems, nail guns, and materials (vinyl, fiber cement, wood.
US TaxSiding installers work seasonally (April through November in cold climates, year-round in warm climates). Revenue drops 70-80% in winter months.
US TaxSiding installation businesses are NOT SSTBs. Materials run 35-45% of revenue (vinyl, fiber cement, wood). Siding installation S-Corp analysis: Industry.
US TaxSolar installers deduct panel inventory (40-50% of revenue), boom trucks, racking and mounting hardware, inverters for demo systems, conduit benders.
US TaxSolar installers face moderate seasonality (spring and summer peaks) and lumpy project revenue. Estimated tax basics for solar installers: - Set-aside.
US TaxSolar installation businesses are NOT SSTBs (they're a qualified trade). The high workers' comp rate (5-12%) raises the S-Corp break-even.
US TaxEverything a new contractor needs to set up the tax side of the business: EIN, entity choice, licensing, insurance, bookkeeping, and first-year deductions.
US TaxWhy roofing crew members are almost always employees: The IRS uses a multi-factor behavioral control, financial control, and relationship test.