Tax Write-Offs for Handymen

Driving from one repair job to the next, to the hardware store for materials, or to the dump is generally business mileage. Most handymen use the standard mileage rate, but actual expenses (gas, repairs, depreciation on the work truck) may be worth comparing if the vehicle is used mostly for work.

Drills, saws, wrenches, levels, and other tools with a short useful life are generally deducted in the year you buy them. Frequent replacements — a stripped driver bit or a worn-out multitool — count too, so keep receipts from every hardware run.

Larger purchases like a table saw, compressor, generator, or trailer are generally capitalized and either depreciated over several years or expensed up front under Section 179 or bonus depreciation. Which treatment is better depends on your income picture for the year.

Materials bought for a specific job — 2x4s, a replacement faucet, boxes of screws — are deductible business supplies when you're not billing them through as reimbursed costs. If a client reimburses you and you report that reimbursement as income, the underlying purchase is still generally deductible.

Sharpening saw blades, replacing sanding pads, servicing a nail gun, or repairing a broken drill are ordinary maintenance costs of a repair trade. These small recurring charges add up over a season of jobs.

State or local handyman and contractor license fees, renewal costs, and the premium for a surety bond required to pull permits or win jobs are generally deductible. Registration fees your city charges to operate a trade business fit here as well.

A liability policy that covers you if a repair goes wrong or a client's property is damaged is a deductible cost of doing handyman work. Premiums for tool or inland-marine coverage on equipment in your van generally qualify too.

Tipping fees at the transfer station, junk-hauling charges, and dumpster rentals for demo debris are ordinary expenses when a job produces waste you have to haul away. Save the scale tickets — they are easy receipts to lose.

Gloves, safety glasses, ear protection, respirators, hard hats, and steel-toe boots required for job-site safety are generally deductible because they aren't suitable as everyday clothing. Replacing worn-out gear during the year counts as well.

Outfitting your work vehicle with a ladder rack, shelving, bins, and lockable tool storage is a business cost of turning a van into a mobile shop. Larger upfit packages may need to be depreciated rather than expensed all at once.

Per-lead charges and subscription fees on Thumbtack, Angi, and similar platforms are advertising costs — you're paying to be put in front of homeowners. Yard signs, vehicle lettering, and door hangers belong in the same bucket.

Renting a jackhammer, floor sander, scaffold, or auger for a job that doesn't justify buying the tool is generally deductible. The rental store receipt tied to the specific job makes the business purpose easy to document.

A handyman's phone is the dispatch office — quoting jobs, texting photos of finished work, and taking payments. The percentage of your phone bill that reflects business use is generally deductible; a personal line used partly for work needs a reasonable split.

Apps you use to send estimates, invoice clients, and collect card payments are ordinary costs of running a trade business. Payment-processing fees taken out of each job payment may be deductible as well.

Paying another self-employed worker to help with a two-person job — holding drywall, digging, demo — is contract labor. If you pay any single helper enough during the year, you may need to issue a Form 1099-NEC.