In short

Tax preparation support for contractors depends on job and asset records: subcontractor payment totals and W-9s for information returns, a fixed asset register for trucks, tools and heavy equipment, documentation of vehicle use, the treatment of customer deposits and retainage at year end, and a summary of the states and localities where the contractor worked so the owner and preparer can review filing obligations.

Contractors tend to have more tax paperwork than other businesses of the same size: dozens of subcontractors, expensive equipment, vehicles used on and off site, and projects that cross the year end. Our tax support for construction businesses is about organising those items so returns are accurate and questions are rare.

Subcontractors and information returns

If you pay subcontractors, you need their taxpayer details before payment, normally collected on Form W-9. Nonemployee compensation is reported on Form 1099-NEC where required. We keep totals by subcontractor during the year and flag anyone missing a W-9, so January is not spent chasing details.

Equipment, trucks and tools

Heavy equipment and work vehicles are usually capital assets. Publication 946 explains depreciation, and Publication 463 covers car and truck expenses, including records of business use. We maintain an asset register with purchase dates, costs and disposal details, and keep mileage or usage logs with it.

Jobs that cross the year end

A project that starts in the autumn and finishes in spring raises questions about when income and costs belong on the return. The answer depends on your accounting method; the IRS explains methods in Publication 538. We prepare a year-end schedule of open jobs, customer deposits, retainage and unbilled work so your preparer can apply the right treatment.

Working in more than one state

Contractors often follow work across state lines. Each state sets its own rules for registration, sales and use tax on materials and payroll withholding. We keep a list of where you worked and when, and our state guides link to official revenue sites.

Year-end package

  • Subcontractor payment totals with W-9 status
  • Fixed asset additions and disposals
  • Vehicle use records
  • Open job, deposit and retainage schedule
  • States and localities worked

If you have a preparer, we hand over this package; preparation itself can be part of an agreed engagement. See our tax services, our construction bookkeeping or book a consultation.