Auto repair
Auto repair: the tax questions worth asking early
Parts, labor, and shop supplies each behave differently, and core charges confuse most books.
Decisions that change the picture
- Stocking parts inventory versus ordering per repair.
- Adding a lift, alignment rack, or diagnostic equipment.
- Selling shop-supply fees or extended warranties.
Records worth keeping as you go
- Parts purchases with core charges and returns tracked.
- Technician pay records, flat rate or hourly.
- Equipment purchase and financing documents.
Questions to bring to your tax pro
- How should my parts inventory be handled at year end?
- Does the equipment I bought change my picture this year?
- Are warranty and shop-supply fees recorded the right way?
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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