Regardless of the trade you mastered, we here to help you master your finances.
More than 70% of Building Trades contractors have not set up their business for tax efficiency. That means you are likely paying too darn much in taxes. Remember, you only have to pay the Minimum that the law requires. Not a dime more.
When it comes to taxes for Contractors, we can help. If you receive 1099-MISC or 1099-NEC statements at the end of the year, we will help you minimize your tax bill. Let's take a look at some of the deductions you may be entitled to take:
SMALL TOOLS: You don't need to write off a portion of the tools you purchase each year. With Section 179 or Bonus Depreciation, you can deduct the full cost in the year you purchase your tools.
VEHICLE EXPENSES: Yes, you typically need proof of your car or truck expenses. But you don't need a super-detailed log. there are many shortcuts to keeping the required records. There's a bunch of low-cost (and even free) apps for your Android or iPhone that making keeping records automatic and easy.
MEALS & ENTERTAINMENT: For the most part, forget about entertainment--it's been disallowed under the Tax Cuts and Jobs Act. But in certain situations, you can still deduct a portion of your meal expenses. We know when it applies. And when it does not. Don't deduct that Egg McMuffin you just grabbed on the way to a job site.
COMPLEX JOB COSTING: Sometimes large jobs require percentage of completion accounting. We can handle these situations.
BONDING REQUIREMENTS: Need to obtain a multi-million dollar bond for a job? We've got the experience to know what the bonding agents need to help you get the bid.
OFFICE IN HOME: Do you know what qualifies as an Office in Home and what is deductible? We do. Here's some tips for information you need to keep track of to maximize this deduction.
SUB-CONTRACTORS: One of the trickier situations is handling casual labor. Perhaps you paid some folks in cash, or other workers don't have "papers" to work legally. Do you know how to handle the tax situation for these types of workers?
EMPLOYEES: There are still a few tax credits for hiring and retaining certain classifications of employees. And since a credit is a dollar-for-dollar reduction of your tax bill, we can help you find those credits and use them to your financial advantage.
UNIFORMS & PROTECTIVE GEAR: Some of the items you purchase may not be tax deductible--like socks, sunglasses, and other work clothes, even if required for your job. Specific-purpose types of gear may be deductible, but only if it is not for general wear--such as steel-toed boots, shirts with company-logo, and safety goggles.
CONTINUING EDUCATION: Whether you took a course to learn a specialty repair or bought books or online webinar for additional designations, many educational expenses (other than to qualify for your first job or license) are typically deductible.
SALES TAX: While not part of the income tax, do you know when you are required to collect and remit sales taxes to the state? Do you know what you can purchase without paying sales tax? Or how to get credit for taxes paid on items that you shouldn't have paid tax on?
The Key to Tax Savings is by having a PLAN. Our knowledge of the law lets us find the loopholes that Save You Money.
If you want it done correctly, come to us. We know the tax deductions you are entitled to take but didn't know about.
Keeping good records is more than just getting ready for tax time. Information is what you need to be more competitive.