Thanks to our partners Promotive and Wicked File
Are you sure you’re capturing every tax deduction your shop — and your employees — are entitled to this year?
What if missing one small detail hands more money to the IRS than necessary?
In this episode, Hunt Demarest kicks off the new tax season by breaking down the most important tax rule changes shop owners need to understand for 2026, and just as importantly, who actually qualifies for them.
From overtime deductions and tip taxation to the surprisingly nuanced rules around car loan interest and a new senior tax break, Hunt explains what’s real, what’s misunderstood, and where shop owners should (and should not) be taking action.
Using real-world payroll examples and clear math, this episode cuts through the headlines to show how these changes affect employees, owners, and families differently — and why failing to understand the details could mean leaving thousands of dollars on the table or creating unnecessary IRS risk.
What you’ll discover…
(02:00) The four major tax changes affecting auto repair businesses this year
(04:49) Why most auto repair shops do not qualify for tip deductions
(07:15) How overtime deductions actually work — and what “qualified overtime” really means
(09:55) How state overtime rules can complicate federal tax deductions
(14:55) Why owners, spouses, and many family members do not qualify for overtime deductions
(16:55) The new car loan interest deduction — and why most shop owners won’t qualify
(18:00) The hidden rules that eliminate many vehicles from the car loan write-off
(22:05) Why “made in the USA” matters more than brand name
(23:10) When buying a new car might make more sense than a used car financially
(25:25) The new senior tax deduction and who benefits most from it
Thanks to our partner Promotive
It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit https://gopromotive.com/
Thanks to our Partner WickedFile
Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: podcast@paarmelis.com
Text Paar Melis @ 301-307-5413
Download a Copy of My Books Here:
- Wrenches to Write-Offs
- Your Perfect Shop
The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/
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