Tax preparation for contractors
Quick answer: Tools, trucks, subs, and 1099s in both directions make trade taxes heavier than office work. We capture equipment the right way, keep sub paperwork clean, and stop the April surprise with estimates that track your jobs.
Tools and equipment
Hand tools deduct now; big equipment can be expensed or depreciated. We pick per item, not by default.
Work truck strategy
Mileage versus actual costs versus depreciation on a heavy truck moves four figures. The right answer depends on the truck and the year.
Subcontractor 1099s
Paying subs over the threshold means issuing 1099s with W-9s on file. We keep you compliant in both directions.
Materials and job costing
Materials, permits, dump fees, and small rentals belong against income, ideally tracked per job.
Licenses, bonds, insurance
Contractor licenses, bonding, and liability premiums are ordinary deductible costs.
Retirement that fits lumpy income
SEP and solo 401(k) contributions flex with good and lean years, sheltering profit when you have it.
Educational overview, not tax advice. Every deduction here has rules and limits, and a real preparer reviews your actual situation before anything is filed.
Can I write off my truck?
The business-use share, yes, by mileage or actual cost, and heavy trucks have their own expensing rules. Personal commuting miles never count, so the log is what makes it stick.
What if I did not send 1099s to my subs?
Fix it going forward and file late forms now; penalties grow with delay. We set up the W-9 habit so next January takes ten minutes.
I get paid in cash sometimes. Does it matter?
All income counts regardless of how it arrives. Reported income with matching deductions usually nets out better than hidden income with none, especially when you need financing.