General Contractor

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  • 1.  New Mexico GRT deductions

    Posted 04-22-2020 13:24
    Can a general contractor deduct their project labor and/or the subcontractor labor from Gross receipts?  i am probably stretching it but I see references that lead me to suspect that project labor can be included in the "construction services" deduction.

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    Randall Rafidi CPA
    Controller
    GCON, Inc.
    Phoenix AZ
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  • 2.  RE: New Mexico GRT deductions

    Posted 04-23-2020 11:48
    Depends. 

    Some cities/counties allow it and some don't. You have to check in with them to see if excluding subs is allowed.

    For example, Oakland has a flat % for GRT that is pretty low and you can not excluded the subs but just across the bridge, San Francisco's GRT is very high and you can.