Small Construction Business Tax Deductions & Tips

Tax Deductions & Tips

Small construction businesses have several tax deductions and write-offs they can claim to help reduce their taxable income. Here are some of the most common deductions small business owners can take advantage of.


Tax Deductions for Small Construction Businesses


If you use your vehicle for business purposes, you can deduct a portion of your mileage from your taxes. The IRS allows small businesses to remove $0.545 per business mile driven. Keep track of all your business mileage throughout the year so you can take advantage of this deduction come tax time.

Equipment Costs

If you’ve purchased any new equipment or tools for your small construction business, you can deduct the cost of these items on your taxes. This includes small and large purchases, such as vehicles, tools, and machinery.

Training Costs

If you or any of your employees have taken part in any type of training related to your small construction business, you can deduct the cost of these courses on your taxes. This is a great way to offset the cost of continuing education and professional development.

Advertising Expenses

Any advertising expenses incurred by your small construction business are tax-deductible. This includes costs related to print, online, and broadcast advertising, as well as marketing materials and campaigns.


Utilities are one of the most significant expenses for small businesses, so it’s important to remember to deduct them come tax time. This includes electric, gas, water, and sewage fees. You can also deduct a portion of your internet and phone bill if you use these services for business purposes.

Overhead And Office Expenses

Small businesses can deduct a variety of overhead and office expenses on their taxes. This includes the cost of rent, furniture, and office supplies. You can also deduct the cost of any business-related travel expenses, such as airfare and hotel stays.

Other Fees

Small construction businesses can take advantage of several other small business tax deductions. These include professional dues and subscriptions, bank fees, legal and accounting fees, office supplies, and more.


Other Tips to Save Money at Tax Time

In addition to taking advantage of small business tax deductions, there are several other ways small construction businesses can save money at tax time. Here are a few tips to keep in mind.

Claim all Business Expenses

Be sure to claim all eligible business expenses on your taxes, as this can help reduce your taxable income. This includes small and large expenses, such as mileage, equipment, advertising, and more.

Keep Detailed Records

It’s essential to keep detailed records of all your business expenses throughout the year. This will make it easier to track deductible expenses come tax time. Be sure to save receipts, invoices, and any other documentation related to your small construction business.

Hire a Professional

Consider hiring a professional tax advisor or accountant to help you with your small business taxes. They can ensure that you’re taking advantage of all the deductions and write-offs available to small businesses, and they can also help you save time and money come tax time.



Small businesses can take advantage of many small construction business tax deductions and write-offs. By claiming these deductions, small businesses can reduce their taxable income and save money at tax time.