Tax guides · For handymen, remodelers & independent trades

Trades deductions: from the tools to the truck

Independent trade work runs on purchased materials, expensive tools, and a vehicle full of both — three categories the IRS fully recognizes as business costs. The contractors who keep the most per job are the ones whose supplier receipts survive the year. Here's the map:

Schedule C · Lines 22 & 38Materials — and the pass-through trap

Lumber, fixtures, fasteners, paint: deductible. The accounting detail that matters: when a client reimburses materials, that reimbursement is income and the purchase is the matching deduction — both sides recorded, or your numbers won't reconcile with your 1099s. Big-box receipts are the backbone of a trades return; lose them and you're taxed on money you spent at the supply desk.

Schedule C · Lines 13 & 22Tools — small daily, big yearly

Schedule C · Line 9The work truck

Standard mileage rate or actual costs — for a heavily-used work truck hauling material, actual costs (fuel, repairs, insurance, depreciation, loan interest, prorated to business use) often beats the per-mile rate. Run both numbers the first year. Job-site parking and tolls add on either way; commuting to a single regular shop doesn't count, travel between job sites does.

Schedule C · Lines 11, 15, 17, 23The license-and-liability stack

The glovebox archive: Every trades audit story starts the same way — a year of supply-house receipts riding in a truck door until they faded. Snap at the register; the glovebox retires.

Snap it. Deduct it. Done.

stub. scans any receipt in seconds, finds the deduction, and maps it to the right Schedule C line. Built for the trades. 15 free scans a month.

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More guides: Owner-operator deductions · The freelancer checklist · All tax guides

This guide is general education, not tax advice. Tax rules change and individual situations differ — confirm current rates and rules at irs.gov or with a tax professional before filing.