Your truck is probably your single biggest write-off. Electricians drive to job sites every day, and vehicle expenses add up fast. You can either deduct actual expenses like gas, maintenance, tires, insurance, and depreciation, or use the standard mileage rate. For a work truck or van you bought for the business, Section 179 lets you deduct a significant portion of the purchase price in the year you bought it. Just make sure you’re logging mileage or keeping records of actual costs. The IRS won’t accept a guess.

Tools and equipment come next. Hand tools, power tools, meters, testers, conduit benders, fish tapes, drill kits, and anything else you use on the job. Smaller purchases get expensed in the year you buy them. Bigger equipment like a new wire pulling machine or generator can be deducted under Section 179 or depreciated over time. Don’t forget replacement tools either. If you’re buying new Klein strippers or a Fluke meter every year, those all count.

Materials and supplies you purchase for jobs are deductible as cost of goods sold or direct job expenses depending on how your books are set up. Wire, conduit, breakers, connectors, junction boxes, tape, fasteners. If you’re buying materials and getting reimbursed by a GC, the reimbursement is income and the purchase is an expense. Both need to be recorded.

Insurance premiums are fully deductible. General liability, commercial auto, workers’ comp, inland marine coverage on your tools, and any bonding you carry. California contractors often carry multiple policies and the combined annual cost is significant.

Licensing and continuing education are deductible. Your California C-10 license renewal, CSLB fees, code update classes, and any certification courses. If you’re paying for an apprentice or journeyman’s training, that’s deductible too.

Subcontractor payments are deductible when you hire other electricians or helpers on bigger jobs. Just make sure you’re issuing 1099s to anyone you pay $600 or more in a year. Missing 1099s can cause problems if you’re ever audited.

Other deductions that add up include your cell phone bill (business use percentage), office supplies, accounting and bookkeeping fees, advertising costs, uniforms and safety gear like hard hats and arc flash equipment, and any software you use for estimates or scheduling. If you work out of a home office where you do your bidding and paperwork, that square footage is deductible too.

The pattern with most skilled trades businesses is that the deductions exist but they don’t get captured. You buy a $400 tool at Home Depot with your personal card, lose the receipt, and never record it. Multiply that by a few times a month over twelve months and you’re paying taxes on thousands of dollars you actually spent on the business.

The fix is straightforward. Use a dedicated business account for everything, keep your books current, and categorize expenses correctly throughout the year. Working with contractor bookkeeping services that understand trade businesses means nothing gets missed and your tax return reflects what you actually spent to run the business. The deductions are there. You just have to track them.