Worker classification, equipment depreciation, and project-by-project job costing for general contractors, subcontractors, and trade businesses.
Construction and contracting businesses run on job costing, not just overall revenue, and a bookkeeping system that does not track profitability project by project is telling you almost nothing useful. Hasco Tax Advisors works with general contractors, subcontractors, and trade businesses on job costing, equipment depreciation, and the specific worker classification issues that come up constantly in this industry.
Construction has one of the highest rates of worker misclassification of any industry, subcontractors treated as 1099 who function like employees, or crew members paid cash without any classification at all. The IRS applies specific tests around behavioral control, financial control, and the nature of the relationship, and getting this wrong creates back payroll tax liability that can be severe once a business has multiple crews running for years.
Heavy equipment, trucks, and tools represent significant capital investment, and Section 179 combined with bonus depreciation allows most of that cost to be deducted in the year of purchase rather than spread over years. Heavy vehicles over 6,000 pounds gross vehicle weight receive more favorable treatment than passenger vehicles, which matters when planning a truck purchase.
Contractors with larger, multi-period contracts may be required to use the percentage-of-completion method for tax purposes rather than simple cash accounting, recognizing revenue as the project progresses rather than only when payment is received. This affects both bookkeeping and estimated tax planning meaningfully.
Contractors who take jobs across state lines can trigger state tax filing obligations in states where they performed work, even briefly. This is frequently overlooked until a state notice arrives.
Materials, labor, and overhead are tracked per project, so you know which jobs are actually profitable, not just what your total revenue looks like at year-end.
Subcontractor payments are tracked throughout the year, so January 31 1099-NEC filing is not a scramble to reconstruct who was paid what.
Heavy equipment and vehicle purchases are tracked and depreciated correctly, coordinated with Section 179 planning for maximum first-year deduction.
Payroll processed for full-time crew members with correct classification, keeping you protected from the misclassification exposure this industry sees constantly.
Join the individuals and business owners who trust Hasco Tax Advisors with their most important financial decisions. Your first consultation is completely free, and you will leave it with a clear, direct answer on what is needed and what it costs.