You’re taxed on your net profit, not the total job amount. Business expenses like Hoist’s commission, labor, and materials are deductible.

When Hoist sells a job on your behalf, we collect and keep 25% of the total job amount. You receive the remaining 75%, which is considered your gross income.

Your taxable income is calculated after subtracting job-related expenses like labor and materials from that gross income.

Example:

For a $10,000 Job

• Homeowner pays: $10,000
• Hoist keeps: $2,500 (25% commission)
• You collect: $7,500 (this is your gross income)
  

Now, subtract your expenses:

• Labor costs: $4,000
• Materials costs: $1,000
  

Your taxable net profit: $2,500

Key Points:

• You’re only taxed on your net profit, not the full amount you receive.
• Hoist’s commission is a deductible business expense, just like labor and materials.
• The more you spend on business expenses, the lower your taxable income.
• This assumes you’re operating as a typical small business, such as an LLC or sole proprietorship.
  

Important Disclaimer:

Tax laws vary by state, business structure, and accounting method.

This is a simplified example. Always consult a tax professional or CPA to ensure you’re following local regulations.