Small Business Taxes

Construction Business Tax Write‑Offs and Recordkeeping

Updated 2025-10-28

Tax requirements for contractors: job‑costing, equipment deductions, retainage, and certified payroll considerations.

  1. Job‑costing & WIP
  2. Equipment & vehicles
  3. Retainage & billing
  4. Payroll & labor compliance
  5. Documentation

Job‑costing & WIP

Use cost codes and WIP schedules to align revenue and expenses per job.

Equipment & vehicles

Depreciate heavy equipment; track mixed‑use vehicle logs for allocations.

Retainage & billing

Account for retainage receivable; recognize revenue under your chosen method.

Payroll & labor compliance

Certified payroll and prevailing wage rules may apply on public jobs.

Documentation

Maintain contracts, change orders, lien releases, and insurance certificates.