Two tax strategies many construction business owners still aren’t using — both completely legal.
First: hire your children. If your kids do legitimate work in your business — filing, cleaning the office, social media, errands, organizing tools — you can pay them up to $16,100 in 2026 with potentially zero federal income tax on their end.
And if you operate as a sole prop or husband-wife partnership, wages paid to children under 18 are generally exempt from Social Security and Medicare taxes too.
Second: the estate tax exemption is now permanently increased to $15 million per person in 2026, indexed for inflation.
That creates major planning opportunities for contractors with valuable businesses, real estate, or equipment. Family LLCs, gifting strategies, and trusts can help transfer wealth while reducing future estate taxes.
These strategies require planning — they don’t work retroactively.
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Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.