Legal Disclaimer: This article is written for informational purposes only and does not constitute professional financial advice. Please reference section179.org and a professional accountant for advice on financial planning and filing taxes.
As 2020 comes to an end, you might be thinking about all of this year's expenses and wondering what you might be able to write off on your taxes. You may even be considering whether or not to make a big purchase, weighing the tax deductions you could get if you bought it this year versus next.
Is it worth buying that new lift before the year ends? Or should you put it off until 2021?
What is Section 179?
Section 179 of the IRS tax code allows business owners to write off the entire cost of a piece of equipment, renovations, or other assets in the first year instead of writing off an asset a little bit at a time over a five, seven, fifteen, or thirty-nine year period. To give an example, if a shop owner buys a new tire machine, they could either write off the taxes over a seven-year period, or they can use Section 179 to get the entire deduction in the first year.
What Type of Costs Qualify for Section 179?
Tangible business property, including machinery and equipment
Leasehold improvements
Computer software*
*Is Tekmetric Eligible for Section 179?
Generally speaking, off-the-shelf computer software that has been purchased outright is eligible for Section 179. Because Tekmetric is a web-based software and does not make users sign a contract, it is not eligible for section 179, but it does qualify for a standard tax deduction.
What are Leasehold Improvements?
Leasehold improvements are any repairs or modifications that you make to your building or property, including adding a new roof, installing security or safety systems, and remodeling parts of your building without expanding the footprint. Without Section 179, leasehold improvements depreciate over 15 or 39 years, depending on what the improvements are. With Section 179, you can receive the entire deduction in the first year.
How Often Does Section 179 Change?
Section 179 is typically adjusted every several years. Most recently, Section 179 was adjusted in 2018 when the deduction limit was doubled and more types of purchases were made eligible. Section 179 may change again in the following years.
When Should You Use Section 179?
If you know that you’re going to pay taxes this year, and you have made a major qualifying purchase, then you may want to consider using Section 179 to save on your taxes and free up some cash flow for 2021.
If you financed a major purchase, you may want to consider how soon you plan on paying off that purchase and whether or not you would like to receive a tax deduction in the following years as you pay it off. For example, if you have a loan on a piece of equipment that you plan on paying over five or ten years, you may want to opt for the regular depreciated tax reduction so that you have money to offset those taxes in the following years.
Should You Make a Major Purchase Before the Year Ends to Use Section 179?
It’s not the wisest decision to buy something just to save money. It is true that Section 179, and tax benefits in general, are the best that they’ve been in years, but consider only making a major purchase if it is already in your plan and budget. If it is something that you already planned on buying in the next six months, then you may want to make the purchase before the end of the year to leverage Section 179’s tax deductions.
Talk to the Auto Repair Accounting Experts
Every situation is different. Take a look at what your tax rates are and ask yourself, "Is my income low enough this year where I'm actually reducing taxes at a pretty low rate? What do I think the tax rates are going to be in the future? Or will this benefit me more in the coming years when I think I'll be making more money?"
Talk to your accountant to form a game plan for all of this.
This article was written with the guidance of automotive repair industry CPA Hunt Demarest of Paar, Melis, & Associates, P.C.
Need help planning your taxes for 2020? Contact Paar, Melis, & Associates.
Auto repair shops generally calculate the cost of their repairs with numerous factors that contribute to the entire process.
This includes the cost of parts and any necessary upcharges for the shop to generate a profit, as well as the cost of labor.
In this guide, we will help your independent auto repair shop learn how to maximize your profit margin specifically on your shop's labor rate.
Want to learn more? Check out our latest Auto Repair Industry Index! We cover everything from overall industry health to unique shop settings for Tekmetric users to get the most value out of the work they already do!
Starting a business can be a big risk. But if you map out a plan and execute it right, the outcome is well worth it. Having a solid automotive repair workshop business plan in place is especially important if you ever plan on owning multiple shops.
When you realized that you wanted to be a shop owner, it’s likely you considered the good you can do for both yourself and other people. Helping customers get their vehicles back on the road, and helping service advisors and mechanics grow in their careers is an exceptionally rewarding aspect of owning and operating a repair shop.
Almost 1,000 shop owners, service advisors, and technicians gathered in Houston for Tektonic 2026, Tekmetric's first industry conference. Over two days at the Marriott Marquis, attendees packed breakout rooms, traded hard-earned lessons, and heard from operators, coaches, and industry leaders who have built and scaled shops of their own.
The Question That Started It All
Tekmetric CEO and Founder Sunil Patel opened Tektonic 2026 with a question he has been asking since he was writing service tickets and mopping floors at his former Houston shop, Motorwerks of Houston: "Why does it have to be so hard? Why does it have to feel like we're fighting a war on 12 fronts?"
That question, he told the room, is the reason Tekmetric exists.
Standing in front of shop owners, service advisors, and technicians who understand that question on a cellular level, Patel walked through how much harder running a repair shop has become. Vehicles are packed with software, sensors, and calibration systems that require entirely new toolsets. Customer expectations have been shaped by on-demand everything. Technician shortages continue to press on shops across the country. And OEM data restrictions are making it harder for independent shops to do the work they were built to do.
But Patel didn't stop at the challenge. He laid out four pillars he believes the industry needs to move forward: stop celebrating burnout as a badge of honor, build genuine trust with customers and teams, invest in an ecosystem of great partners and vendors, and embrace technology that serves shops rather than extracts from them.
He closed with a simple ask for everyone in the room: be curious, be open, be generous with what you know, and be present.
"I want you to take something away from here," he said. "Something that will get you to be 1% better than you were."
That set the tone for everything that followed.
Top Takeaways
Process Consistency Wins on the Hard Days
Busy days don't create problems. They expose them. The best shops build their standard operating process before the chaos starts.
Call the day before. A preappointment call to review service history and flag overdue maintenance turns intake from reactive to planned and primes customers to say yes before they walk in the door.
Speed is your biggest sales tool. Every hour between drop-off and delivering an estimate costs roughly 10% in approval rates. Get findings to customers fast.
Set the next promise, not the finish line. Never promise a completion time you can't guarantee. Promise the next specific update and deliver it on time, every time.
The in-store customer is the highest-priority repair order in the building. Every other car can wait. The person sitting in your lobby cannot.
Improve one thing at a time. Pick one process to fix, measure it, and build accountability before moving to the next. Trying to fix everything at once fixes nothing.
Speed Closes More Jobs Than Salesmanship
Closing rates drop sharply with every hour that passes between drop-off and the customer call. A customer who has been waiting since 8 a.m. has had time to read every one-star review and talk themselves out of approving the work.
Get inspection results to customers within 30 minutes of dispatch. That's the speed zone. Everything else in the shop is secondary until that call is made.
In-store customers get findings in 15 minutes or less. The customer is sitting right there. Use it.
Relative priority is your daily compass. At any moment, the most important thing is moving the car that's furthest behind in the process. Not the loudest customer. Not the most expensive ticket. The earliest step.
Two daily goals. Full stop. Every technician runs at least eight billable hours. The shop hits its gross profit target. Nail both and everything else follows.
You Don't Have a Technician Shortage. You Have a Culture Problem.
The technician pipeline isn't as broken as it seems. What's broken is how many shops make it hard to stay.
Rethink flat rate. Hybrid pay models that combine a solid base with performance incentives align your team's goals with the shop's goals and they're far more attractive to the next generation coming into the trade.
Answer two questions before you do anything else. Why would a technician work here? Why would a customer come back? If you hesitate on either, start there.
Recognition is the highest-ROI leadership move you have. Research cited at the conference found that team members become disengaged because they don't feel seen. Fix that before you invest in anything else.
AI won't replace hospitality. Technology can handle administrative weight, but the trust a service advisor builds with a customer at the counter is irreplaceable. Invest in that skill set.
P.J. Leslie, Tekmetric's head of mid-market and enterprise sales, moderates a panel during Tektonic 2026 in which multishop owners break down the real strategies behind expansion: buying shops, building shops, systemizing operations, integrating teams, protecting culture, and planning for eventual exit or partnership.
Growing to Multiple Locations Takes More Than Money
Every multishop operator on the stage agreed: you're never fully ready, and that's fine. What matters is being profitable, having the right people, and expecting the unexpected.
Profitable and cash-positive before you move. When you make a mistake at location two—and you will—you need a healthy location to cover it.
You're ready when your shop doesn't need you. Build your bench before you open the next door. The manager for location two should already be in your building today.
Start your exit plan on day one. Almost no one in the room at one of Tektonic’s breakout sessions had a clear exit strategy. Don't leave money on the table because you never thought through how the story ends—whether that means selling, transitioning, or building for long-term cash flow.
Leadership Is the Ceiling on Everything Else
Your shop will never outperform your leadership. What you tolerate becomes your standard. How you show up on Monday morning sets the emotional temperature for everyone around you.
Know your triggers before they know you. Name what sets you off. Once you can spot it, you can stop it before it damages a relationship.
Pause for three seconds. Before you respond to anything that's gotten under your skin, stop. Three seconds is the difference between a reaction and a response.
Hear less. Listen more. After someone finishes speaking, let the silence sit. People almost always have more to say and the second thing is usually the real thing.
Walk into hard conversations knowing how you want them to end. Start with the outcome in mind, not the grievance.
Tekmetric Chief Product Officer Jared Haleck breaks down Tekmetric's new products at Tektonic 2026. The new products include Tekmetric digital ads, Smart DVI, and Tekmetric phones.
Product Announcements at Tektonic 2026
The closing session belonged to the Tekmetric product team. Drawing on data from more than 15,000 shops on the platform, Tekmetric President and COO Lauren Langston and Chief Product Officer Jared Haleck built the roadmap around key areas where winning shops consistently outperform the rest: car count, average repair order (ARO), driver experience, and cycle time.
Here's a look at what’s coming:
Tekmetric Digital Ads: AI-powered advertising on Google Maps and Search, built for the moment a driver has a problem and is ready to act. It connects directly to Tekmetric so you can see the gross profit behind every dollar of ad spend, not just clicks.
Smart DVI: Technicians walk the vehicle, narrate what they see, and Smart DVI builds the customer-ready inspection report automatically—findings organized, images annotated, and jobs pre-suggested for the estimate. Less time typing. More time turning wrenches.
Tekmetric Phones: Customer details, open repair orders, and communication history surface the moment an inbound call rings. No more looking it up while someone's waiting. A future capability in development will transcribe calls in real time and auto-populate appointment notes.
See You in 2027
Tektonic 2026 was Tekmetric's first industry conference, and it delivered on the promise Sunil Patel made from the stage: a room full of shop owners, service advisors, and technicians who showed up to get better.
The through-line across every session was the same. The shops that win are the ones that build systems, invest in their people, and keep getting 1% better. Not all at once. One thing at a time.
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