As a residential general contractor in Texas, I only do fixed-based contracts. I have questions about taxes related to services provided by vendors. For example, when I hire a window company to build and install a shower door, the invoice usually includes the cost, no tax, and the final cost. I add a percentage markup on their product and installation, which is included in the overall contract. I understand that the window company pays taxes at their end. However, when I buy building materials from Home Depot, I pay taxes immediately. I do not pay taxes on my overall profit, unlike on a commercial project. Can you clarify the tax implications for these scenarios?

October 13th, 2023

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