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Construction Accounting: How to Maximize Tax Deductions

  • Writer: Aashir Abbas
    Aashir Abbas
  • Sep 16
  • 1 min read
Construction Accounting: How to Maximize Tax Deductions

The construction industry comes with complex accounting needs — from job costing to equipment depreciation. Without the right strategy, contractors in Fort Myers and Naples risk leaving valuable deductions on the table.

At MarkhamNorton, our CPAs specialize in construction accounting and know how to keep your business compliant and profitable.


Common Tax Deductions for Construction Businesses

  1. Equipment DepreciationHeavy machinery, trucks, and tools can often be depreciated over time for major tax savings.

  2. Material CostsSupplies directly tied to projects are deductible business expenses.

  3. Employee Wages & BenefitsPayroll and benefits for construction staff are fully deductible.

  4. Subcontractor PaymentsTrack and report payments to subcontractors with Form 1099-NEC.

  5. Home Office or Job Site OfficesIf you maintain a qualifying office, you may be eligible for deductions.


Why Construction Businesses Need Specialized Accounting

  • Complex job costing across multiple sites.

  • Managing cash flow with irregular payment schedules.

  • Ensuring compliance with industry associations like CFMA.


FAQ

Q: Can contractors deduct travel expenses?A: Yes, travel directly tied to job sites is deductible, including mileage, lodging, and meals.

Q: Should I hire a CPA or manage accounting in-house?A: A CPA ensures compliance, maximizes deductions, and frees your time for running projects.


Maximize deductions and strengthen your financial foundation with construction accounting from MarkhamNorton in Fort Myers.



 
 
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