Tax Write-Offs for Construction Companies

Adam Greene, CPA, is the founder of Greene & Company, LLP, in Melville, NY. Establishing the firm 28 years ago, Adam Greene, CPA, provides tax advisory services to construction companies. Like all businesses, construction companies must file taxes at year end. Understanding what items are considered tax write-offs throughout the fiscal year is helpful in organizing documents. Equipment and transportation are two necessities of carrying out business operations and are considered tax deductible. From drills to crane lifts, equipment used for the sole purpose of building a structure or site may be reported as a deduction. In addition, mixed-use expenses, such as cell phones and home offices, that are used for business and personal purposes may qualify as partial deductions. Transportation used to conduct business activities are also recognized by the government as a tax deduction. Business-designated vehicles that transport equipment and materials to and from a construction site can be written off. In addition, the Internal Revenue Service accepts vehicle-related expenses, such as insurance, maintenance, and gas expenditures. As such, keeping a clear record of expenses and the miles traveled during the year is necessary to file an accurate return.