Auto repair and body shops, dealers, mobile detailing and car washes, boat detailing, and window tinting: inventory, equipment depreciation, sales tax, technicians' pay, and estimated taxes.
39 guides, each written by a CPA licensed in the US and Canada.
Auto body shops are NOT SSTBs, so the QBI deduction applies at all income levels. Parts and materials cost 35-45% of revenue (the largest variable cost).
US TaxAuto body shops are NOT SSTBs and qualify for the full QBI deduction. The S-Corp election saves $5,000-$12,000/year at $120,000+ net profit.
US TaxAuto body shops have mild seasonality (winter and spring are slightly busier due to weather-related accidents). Insurance/DRP work provides steady volume.
US TaxAuto body shops can deduct paint booths ($40,000-$150,000, Section 179), frame machines, paint and materials, parts costs, garagekeepers insurance.
US TaxAuto body shop deductions center on parts and materials (35-45% of revenue), paint booth and frame machine depreciation, and facility costs.
US TaxDealership pay structures create unique tax and compliance issues, from salesperson commission withholding to technician overtime exemptions.
US TaxAuto repair shops deduct parts and materials as cost of goods sold, tools under Section 179 or de minimis safe harbor.
US TaxAuto repair shop owners can shelter significant income through retirement plans. Retirement plan options for auto repair shops: Solo 401(k) (owner-only.
US TaxAuto repair shops are not SSTBs, making the full QBI deduction available at any income level.
US TaxAuto repair shops must classify mechanics correctly. Most mechanics working in a shop are employees, not independent contractors.
US TaxBoat detailing is NOT a specified service trade or business (SSTB). S-Corp election makes sense at $55,000-$65,000 in net profit.
US TaxBoat detailing is highly seasonal (60-70% of revenue April-September).
US TaxBoat detailing has 65-80% gross margins. Key deductions include vehicle/trailer ($5,000-$35,000), pressure washer ($1,000-$5,000).
US TaxBlue sky is the biggest number in a dealership buy-sell. Here is how goodwill, franchise rights, and covenants not to compete are allocated, amortized.
US TaxCar wash businesses are NOT an SSTB. Equipment depreciation is massive (wash systems $100,000-$500,000+). An automatic tunnel wash system costs $500.
US TaxCar wash revenue is seasonal (peaks spring-summer). Year 1 depreciation from equipment and cost segregation often eliminates estimated tax payments.
US TaxCar wash equipment ($500K-$2M+) qualifies for bonus depreciation. Cost segregation reclassifies 20-40% of the building to shorter-lived property.
US TaxA cost segregation study can reclassify 20 to 30 percent of a dealership building into components eligible for 100% bonus depreciation.
US TaxDemo vehicles can be a tax-free fringe benefit for qualifying salespeople or a taxable inclusion requiring careful valuation.
US TaxAuto body shop revenue is relatively steady (accidents happen year-round) but insurance payment cycles create 30-45 day cash flow delays.
US TaxAuto repair shop owners must pay quarterly estimated taxes on business profits. Quarterly estimated tax due dates: - Q1: April 15 (for January-March.
US TaxThe clean vehicle credits under IRC 30D and 25E ended for vehicles acquired after September 30, 2025, but dealers still must reconcile point-of-sale.
US TaxF&I products generate high-margin income, but the timing of recognition depends on whether the dealer is agent or obligor.
US TaxAuto dealers can deduct floor plan financing interest without the IRC 163(j) interest cap, but relying on it can cost the dealership bonus depreciation.
US TaxThe LIFO method lets auto dealers defer tax on rising vehicle prices by valuing inventory at older, lower costs, but the conformity rule ties it.
US TaxMobile auto detailing is NOT a specified service trade or business (SSTB). S-Corp election makes sense at $55,000-$65,000 in net profit.
US TaxMobile auto detailing has 65-80% margins with very low product costs (5-12%). Mobile auto detailing deductions: Equipment (moderate startup cost): - DA.
US TaxMobile auto detailing is moderately seasonal (peaks April-September, especially in northern markets). Ceramic coating work fills winter months.
US TaxMobile detailers deduct ceramic coatings, polishing compounds, extraction equipment, water tanks, generators, and vehicle expenses.
US TaxMobile car detailing businesses are NOT specified service trades or businesses (SSTBs), preserving the full QBI deduction.
US TaxMobile detailers with cash and digital payment income must track all revenue for estimated tax purposes. Mobile detailing estimated tax planning: 1.
US TaxMobile car wash businesses are NOT SSTBs, so the QBI deduction applies at all income levels.
US TaxMobile car wash businesses have mild seasonality (1.5-2x peak-to-trough ratio in most markets). Seasonal revenue pattern (four-season market).
US TaxMobile car wash deductions center on the vehicle/rig setup ($10,000-$40,000, Section 179 eligible if over 6,000 lbs), pressure washer and equipment.
US TaxDealer groups operating across state lines face nexus rules, single-sales-factor apportionment, entity structure choices, and state PTET elections.
US TaxThe service department is the dealership's most consistent profit center, with warranty reimbursement, parts inventory, and labor rate accounting.
US TaxWindow tinting is NOT a specified service trade or business (SSTB). S-Corp election makes sense at $55,000-$65,000 in net profit.
US TaxAutomotive window tinting peaks in spring and summer (people tint before the heat). Northern markets see 60-70% of revenue April-September.
US TaxWindow tinting film costs 5-15% of revenue (extremely low material costs). Cutting plotters ($2,000-$5,000) are Section 179 eligible.