Welding and fabrication
Welding and fabrication: the tax questions worth asking early
Shop equipment, gas cylinders, and custom work create both large purchases and inventory questions.
Decisions that change the picture
- Buying a welder, plasma table, or press brake.
- Carrying steel stock versus ordering per job.
- Taking deposits on custom fabrication work.
Records worth keeping as you go
- Equipment invoices and financing agreements.
- Material purchases tied to jobs, with drop and scrap tracked.
- Deposit records showing what work they cover.
Questions to bring to your tax pro
- How should this year's equipment purchase be handled?
- Do customer deposits count now or when the work is finished?
- Is my scrap income being reported?
This guide is general information, not tax advice. Your tax professional decides what applies to your business and your filing.
Send me this guide, and the two others for my trade.
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