Subcontractor Costs Tax Deductions
Costs paid to subcontractors for work performed on your projects. Common in construction, IT, and professional services industries where you delegate portions of client work.
check_circleWhat You Can Deduct
- checkSubcontracted labor on client projects
- checkSpecialized trade work (electrical, plumbing)
- checkWhite-label service provider fees
- checkSubcontracted design or development work
- checkField labor and installation crews
- checkSpecialized testing and inspection services
lightbulbTips for Keeping Records
- tips_and_updatesMaintain a subcontractor agreement for every engagement
- tips_and_updatesTrack subcontractor costs per project for accurate job costing
- tips_and_updatesVerify each subcontractor has their own insurance coverage
- tips_and_updatesIssue 1099-NEC forms for all subcontractors paid $600 or more
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