Construction and Trade Tax Deduction Checklist

Tip Tuesday | The Tradies Tax Deduction Checklist



As we begin to complete our tax returns, individuals may or may not be aware that business related expenses incurred are subject to tax deductions.

If your employer does not reimburse their employees for these expenses, then the construction worker can deduct those items. Let’s take a look at a few tax deductions that a construction worker may be able to claim:

Uniform and Gear

The clothing must be specific to your job and not suitable as everyday clothing. Although you wear jeans and shirts to the jobsite, they are not deductible as they can be used as everyday clothing. However, if you job requires you to purchase a uniform or special clothing such as coveralls then those can be deducted as a specific work related expense. Similarly, personal protective equipment is requirement for your job and a deductible work expense.

  • Unifroms
  • Dry Cleaning for uniforms
  • Eye protection glasses
  • Safety gloves
  • Safety boots
  • Protective hearing aids
  • Hard hats
  • Respirators
  • Sunscreen

While the following may be a requirement for your job, individuals are not able to deduct these following expenses:

  • Business Suits
  • Jeans
  • Haircuts

Professional Development

Work related expenses to improve your skills or further your career qualify as a tax deduction. However, those deductions are limited if they apply to your current job or profession. Unfortunately, if you seek to change jobs or pursue a new trade, any of those educational expenses will not apply.

  • Union Fees
  • Association Membership fees
  • Conferences, seminars, and training course
  • Educational Expenses
  • Professional Publications such as books or magazine subscriptions
  • First aid courses

Business Travel

For any business travel that takes you away from your home for a period of time, you will be able to deduct those expenses. Some travel might include visiting a client, jobsite, vendor, or even a attending tradeshow. The following expenses are tax deductible:

  • Transportation costs incurred include mileage, rental car, train, airfare, taxi, uber, etc.
  • Baggage fees or shipping costs
  • Accomodation
  • Meals
  • Dry cleaning or laundry

Driving Expenses

Whether you are driving to work or taking public transportation, regular commuting costs from home to office are not tax deductible. However, individuals can deduct travel expenses in connection with a work assignment away from home or the main office. Construction workers that commute to the jobsite or travel to the jobsite can deduct those travel expenses. Such everyday travel expenses include:

  • Home to jobsite mileage
  • Office and a jobsite mileage
  • Between two jobsites mileage
  • Parking fees and tolls

Tools and Equipment

What is a construction worker without their tools? Many companies supply tools for their employees, but sometimes employees purchase their own if they have a favorite brand. The following are examples of possible deductible items;

  • Tools and equipment
  • Repairs to tools and equipment
  • Insurance of equipment
  • Computer, tablets and smartphones / phone expenses

It’s important to remember that expenses reimbursed by your employer cannot be claimed as tax deductions. Since the construction worker already received payment for those items, those items are already considered paid and the employees cannot deduct any of the reimbursed amounts.

Personal wealth and financial freedom are important to you and important to us. You might be looking for an accountant for a stress-free tax return, or you might have a complex situation and looking at what’s next in life.

Wherever you are on your journey, we’d love to help you create your beautiful financial future – and that goes way beyond a simple (or complex!) tax return.

If you would like peace of mind when it comes to lodging your tax return this financial year, book an appointment with one of our tax professionals on 4969 4699 or book online.

Disclaimer: This is article is for informational purposes only and cannot serve as tax, legal or accounting advice. Readers should consult a tax or accounting professional regarding their specific financial situation.
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