Your truck, your tools, your materials on every job. We write off the truck, expense the cordless tools, separate customer materials from owner tools, and time the S-Corp election so you stop overpaying SE tax.
Materials get billed to the customer but bought on YOUR card. Without clean separation, the IRS sees revenue and expense that don't match. We fix the bookkeeping first, then the entity.
F-150, Silverado, Ram, Sprinter. Standard mileage 67¢ (2024) or actual + depreciation. >6,000 lb GVWR triggers §179 ($30,500 SUV cap / unlimited true work-truck) + 60% bonus depreciation. We pick whichever gives the bigger Year-1 deduction.
IRC §179(b)(5); §168(k); Rev. Proc. 2024-13DeWalt drills, Milwaukee impact, Bosch tracksaw, drywall lift, scaffolding, generators. Each tool under $2,500 immediately deductible under de minimis safe harbor (no §263A capitalization). Bigger tools §179'd. No depreciation schedule headaches.
IRC §263(a); Treas. Reg. §1.263(a)-1(f); §179Drywall, paint, faucets, fixtures bought for a job. If you mark them up, they're inventory/COGS. If you pass through at cost, they're reimbursable expense (still deductible against the offset revenue). Either way: tracked, deductible, no double-counting.
IRC §471; §162(a); Rev. Rul. 57-374Cash-basis cannot deduct future warranty work as a reserve, but you CAN deduct callback materials and labor in the year you fix them. We log warranty callbacks separately so the deduction lands cleanly in the right year.
IRC §461(h); Treas. Reg. §1.461-4Once you net $70K, S-Corp election usually beats Schedule C. We benchmark reasonable comp from BLS construction labor + state data, then take the rest as distribution free of self-employment tax. Saves $3K-$7K/yr.
IRC §1402(a); Rev. Rul. 59-221General liability, tools & equipment floater, commercial auto, workers comp if you have helpers. Fully deductible per §162. We also catch the "1099 helper" who should really be a W-2 before a state DOL audit reclassifies them.
IRC §162(a); IRC §3121(d)(2); Rev. Rul. 87-41Solo handyman, 6 years, $80K net 2024, just upgraded to a used Sprinter. We S-Corp elected mid-year, §179'd the Sprinter, applied de minimis safe harbor to a year of tool buys, and cleaned up materials COGS.
$7,000 savedFederal + FICA savings on S-Corp split + accelerated vehicle expense + tool de minimis treatment. State savings on top.