Tool deductions
Hand tools under $2,500 can be expensed immediately; power tools and larger equipment depreciate or qualify for Section 179. Keeping a tool log matters in an audit.
Section 179 for shop equipment
Lifts, alignment racks, paint booths, welders, and diagnostic equipment all qualify for Section 179 up to annual limits, plus bonus depreciation. Timing purchases with income matters.
Parts inventory
Shops with meaningful parts inventory need a consistent accounting method (specific identification, FIFO, or LIFO) and year-end inventory counts. This is usually where shop bookkeeping gets loose.
Florida sales tax at the counter
In Florida, most repair invoices that include parts are taxable, and the shop is the collector. Registration, the recurring sales tax filings, and exemption paperwork for resale parts are part of running the shop, and they're also where new shops most often fall behind. We set the system up once so it runs on schedule.
W-2 tech by day, side jobs by night
Plenty of techs wrench on the side. That side income is Schedule C, and the same tools that aren't deductible against W-2 wages become deductible to the extent they're used in the side business. Mileage to pick up parts, a share of the phone, and consumables count too. It also means self-employment tax, so setting aside a piece of every side job avoids the April surprise.
Payroll in the shop
Techs paid flat-rate or hourly on your bays and your schedule are almost always employees, not contractors. Misclassifying them as 1099 saves payroll tax right up until it doesn't: reclassification assessments reach back years. We run shop payroll so the question never comes up.
Common questions
- Can I deduct the tool box my employer requires?
- W-2 employees can't deduct unreimbursed tools through 2025. Shop-owner operators and self-employed techs can.
- What's the best way to handle a multi-bay shop?
- Usually an S-corp with W-2 wages to the owner-operator plus distributions. We model the reasonable salary analysis specific to the shop's income.
- Do I charge sales tax on repairs?
- In Florida, repairs that include parts are generally taxable on the full invoice, while labor-only work is treated differently. We register the shop and set up the filing schedule so it's handled.
- Can I pay my techs as 1099 contractors?
- Usually no. Techs working your bays on your schedule are employees under the common-law test. The payroll cost is real, but reclassification penalties are worse.
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Personal Income Tax Preparation
Federal and state 1040 preparation with year-round planning. We handle W-2, 1099, K-1, rental, and crypto income for individuals in Florida and all 50 states.
Corporation & Partnership Tax Returns
Forms 1120, 1120-S, and 1065 preparation for corporations, S-corps, and partnerships, plus owner K-1s, shareholder basis tracking, and multi-state filings.
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Tax Services for Small Business Owners
Entity selection, quarterly estimates, S-corp reasonable salary, Section 199A, retirement plan design, and year-round planning for small business owners.
Tax Services for Executive Professionals
Stock options, RSUs, AMT planning, Section 409A deferred compensation, 83(b) elections, and state-to-state relocations for executives with equity compensation.
Tax Services for Outside Sales Professionals
Commission income, client entertainment, travel, mileage, home office deductions, and quarterly estimated payments for outside sales professionals on 1099.
Tax Services for IT & Tech Professionals
Remote work multi-state tax filing, 1099 consulting income, equipment deductions, and equity comp like RSUs, ISOs, and ESPP for IT and tech professionals.