Most California contractors think they’re taking the same deductions as everyone else. They’re not.

California doesn’t conform to federal bonus depreciation. California caps Section 179 at $25,000 — federal allows $2,560,000. If your accountant isn’t running two separate depreciation schedules, you’re not just missing deductions — you’re exposed to an FTB audit you don’t see coming.

Beyond the CA trap, there are write-offs most contractors skip entirely: per diem for remote job sites, the de minimis safe harbor for tools under $2,500, vehicle depreciation based on actual GVWR, the permanent 20% QBI deduction, and SEP-IRA contributions up to $70,000 this year.

These aren’t gray areas. They’re legal, documented, and being used by contractors who work with the right CPA.

If your current accountant hasn’t walked you through any of this — that conversation is already costing you money.

Book a free strategy call at accountingsolutionsllp.com/appointment. We’ll find what you’re missing.

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PHOTOROOM IMAGE PROMPTS (Low Poly 3D — Photoroom.com only)

NOTE: Browser access to Photoroom was not available this session. Generate these four images manually at https://app.photoroom.com → Create any image → Style: Low Poly 3D.

Prompt 1 (Equipment Deduction):
A construction business owner reviewing tax documents at a worksite trailer desk beside a large excavator outside the window, faceted crystalline polygons, clean professional low poly 3D style, warm amber and slate blue accents.

Prompt 2 (Federal vs CA Tax Trap):
A split-screen of two stacks of financial documents labeled “Federal” and “California” on a contractor’s desk with blueprints and a hard hat nearby, faceted crystalline polygons, clean professional low poly 3D style, deep navy blue and gold accents.

Prompt 3 (Vehicle Fleet):
A heavy-duty work truck parked at a construction site with a contractor standing beside it reviewing a clipboard with tax forms, faceted crystalline polygons, clean professional low poly 3D style, muted orange and charcoal accents.

Prompt 4 (Retirement Gap):
A construction business owner at a desk with a retirement fund statement and a stack of IRS tax notices beside a hard hat and project folder, faceted crystalline polygons, clean professional low poly 3D style, cool green and dark blue accents.

Save as:
– LI_Image_1_Equipment_Deduction.png
– LI_Image_2_Federal_vs_CA_Trap.png
– LI_Image_3_Vehicle_Fleet.png
– LI_Image_4_Retirement_Gap.png

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.