Construction Sole Proprietor Tax Checklist
A practical checklist for unincorporated construction contractors, trades and subcontractors in Canada.
Use this checklist to organize business records before preparing tax filings or meeting with a tax professional.
Educational use only
This checklist is for general educational purposes only. It may not be appropriate for every reader's or visitor's tax situation and should not be treated as personal tax, legal, financial, accounting, payroll, GST/HST, regulatory or licensing advice. Filing duties, deductible expenses, employment status, GST/HST obligations, reporting requirements and supporting documents depend on your specific facts, province or territory, contracts, residency, business structure and the rules for the tax year being filed.
1. Income, contracts and job records
- Customer invoices, progress billings, holdbacks, extras, change orders and deposit records.
- T5018 slips received from contractors, if any, plus amounts not shown on slips.
- Contracts, purchase orders, quotes, work orders and scope-of-work documents for each project.
- Cash, cheque, e-transfer, credit card and barter income records.
- Job-by-job summary showing labour, materials, equipment, permits and subcontractor costs.
- Accounts receivable list, bad debt support and year-end work-in-progress details if applicable.
2. Construction expense records
- Materials, lumber, concrete, electrical, plumbing, fixtures, fasteners, consumables and site supplies.
- Tools, small equipment, rentals, repairs, maintenance and capital asset purchases.
- Vehicle logbook, fuel, insurance, repairs, parking, tolls, trailer costs and job-site travel.
- Home office or shop expenses, storage, yard rent, utilities, phone, internet and software.
- Licences, permits, bonding, liability insurance, WCB or workers compensation, safety training and professional fees.
- Meals, lodging and travel only where incurred to earn business income and supported by records.
3. Subcontractors, payroll and GST/HST
- GST/HST registration status, taxable sales, sales tax collected and ITC support.
- Subcontractor names, addresses, business numbers, SINs where required, invoice details and proof of payment.
- Review T5018 reporting if construction is the primary source of business income and payments to resident subcontractors exceed the reporting threshold.
- Payroll records, TD1 forms, source deductions, T4s and remittances if workers are employees.
- Worker status support for labourers and helpers: contracts, control, tools, chance of profit, risk of loss and ability to subcontract.
- Provincial sales tax, retail sales tax or other provincial construction-related obligations where applicable.
4. Final review before filing
- Reconcile bank deposits to invoices and T5018 slips received.
- Separate personal-use portions of vehicle, phone, home office and mixed-use tools.
- Confirm capital items are not fully expensed if they should be treated as capital property.
- Keep contracts, receipts, mileage records, GST/HST records and subcontractor documentation for CRA review.
Official sources and reference links
This checklist is a preparation aid. Confirm current eligibility, filing duties, licensing requirements and documentation with CRA guidance, the applicable regulator, or a qualified professional.