Construction & Contractor CPA

Why do you need a CPA that specializes in construction? 

In the dynamic world of construction, building a solid structure is only half the battle; maintaining a solid financial foundation is equally critical.

Construction businesses face a unique set of economic pressures that can erode profit margins and stifle growth if not managed with precision.

Because of our unique knowledge and experience with the construction industry, we serve a variety of business such as:

  • Carpenters

  • Dry Wallers

  • Painters 

  • Roofers

  • Handyman

  • Gutters

  • Siding

  • Cement & Asphalt

Young construction contractor uses table saw to cut wood

Build Your Financial Foundation

Partnering with a CPA firm that specializes in the construction industry gives you more than just a tax preparer; you gain a strategic ally.

We help you overcome financial obstacles by:

  • Implementing robust job costing systems to track profitability in real-time.

  • Developing proactive tax strategies to minimize liability and maximize cash retention.

  • Analyzing cash flow trends to predict shortages and secure financing before it becomes critical.

  • Structuring your business entities to protect assets and optimize tax benefits.

In addition to tax support, we offer construction businesses:

  • Workers’ compensation insurance audits and liability insurance audits.

  • Subcontractor worker 1099-NEC Classifications and payroll processing.

  • Specialized accounting services designed for the construction industry

  • Strategic tax planning to maximize credits and deductions, including equipment purchases and energy-efficient incentives

  • Expense management systems to control costs and protect profit margins

  • Financial strategies to address fluctuating material and labor costs

  • Comprehensive support for sustained growth and long-term profitability

Contractor using a pencil to mark cut lines on wood

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Construction Tax FAQs

Disclaimer:

Please note that the information provided on OchoaTaxes.com is for educational and informational purposes only. The content presented on this website should not be construed as professional tax advice, nor should it be used as a substitute for personalized guidance from a qualified tax professional.

While we strive to ensure the accuracy and timeliness of the information presented, tax laws and regulations are subject to change, and individual circumstances may vary. We encourage you to consult with a certified tax expert or accountant for advice specific to your unique financial situation.

By using OchoaTaxes.com, you acknowledge and agree that neither the website nor its authors shall be held responsible or liable for any errors, omissions, or inaccuracies in the content, or for any actions taken based on the information provided.

  • You can deduct expenses like equipment, materials, subcontractor payments, wages, and office supplies.

    Be sure to keep detailed records and consult a tax professional to maximize your deductions.

  • Yes, construction businesses may qualify for tax credits like the:

    • Work Opportunity Tax Credit (WOTC) for hiring certain employees

    • Research and Development (R&D) Tax Credit for innovative building techniques or materials

    • Energy efficiency credits for constructing or renovating buildings to meet green standards

  • Absolutely. Tools and equipment used in your business are deductible.

    For larger purchases, you may be able to use Section 179 to deduct the full cost in the year of purchase, or depreciate the cost over several years.

  • You may be able to deduct vehicle expenses either by using the standard mileage rate or by tracking actual expenses like gas, maintenance, insurance, and depreciation.

    If the vehicle is used for both personal and business purposes, only the business portion is deductible.

  • Ochoa & Associates can help you issue Form 1099-NEC to all subcontractors who are paid $600 or more during the year.

    Be sure to keep detailed records of payments and contracts to avoid issues during tax filing or audits.

    Contact us for a free consultation!

  • Sales tax requirements vary by state and the type of product or service you offer.

    Generally, tangible goods are subject to sales tax, while most services are not.

    Research your state's sales tax regulations or consult with a tax professional to determine your specific obligations.

  • As an employer, you're responsible for withholding federal income tax, Social Security, and Medicare taxes from your employees' wages.

    You'll also need to pay your share of Social Security and Medicare taxes, as well as any applicable state and local payroll taxes.

    Accurate record-keeping and timely tax payments are essential to avoid penalties and ensure compliance.

    A tax professional can help you track, calculate, and submit your taxes in a timely fashion - contact us for a free consultation!

  • Maintain records of all income, expenses, receipts, invoices, bank statements, payroll records, and contracts.

    For construction businesses, job-specific records like material costs and labor hours are also essential for determining costs and tax liability.

  • Strategies include maximizing deductions, taking advantage of tax credits, deferring income, accelerating expenses, and contributing to retirement plans.

    A CPA can help tailor a plan specific to your business. Contact Ochoa & Associates to get started!

Taxes are complicated.
We make them easy.

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