California is its own tax jurisdiction with its own traps. The pass-through entity tax election, sales and use tax on materials you furnish and install, contract and freelancer rules, and what happens when you take work across state lines.

California & Multi-State

If you’ve ever had a job site hit by a flood, wildfire, or storm — you know the physical damage can be devastating. But here’s something most contractors don’t know: the IRS makes it tough to get a tax break for personal casualty or theft losses… and the OBBBA didn’t change that much.

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Here’s the breakdown 👇 🔸 Bad news first:Until 2026, you can only deduct a personal casualty loss (like a fire or theft) if it’s part of a federally declared disaster.Even then, you
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California & Multi-State

If you’re a contractor in California, and you hire independent pros to help your construction business (e.g. estimator, bookkeeper, marketing consultant, or designer — not your field crew), note that starting January 1, 2025, the Freelance Worker Protection Act (FWPA / SB 988) requires written contracts for freelance jobs worth $250+ (or ongoing work over 120 days).

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That contract must include:- Both parties’ names & addresses- Scope of work, rate, and payment terms- Payment due date (or how it’s determined)- When the freelancer must submit inv
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