The Gray Area of Write-Offs: How to Save on Taxes Without Sinking Your Business [E190]

Thanks to our partners Promotive and Wicked File

Every fall, tax season brings the same loaded question: “Can I write that off?” From flat-screen TVs to four-wheelers, the temptation to blur the line between personal and business expenses is real. But where’s the line between smart tax strategy and a dangerous gray area?

This week, Hunt Demerast, CPA at Paar Melis & Associates, breaks down the myths and realities of tax write-offs. With humor, clarity, and two decades of experience, he explains what the IRS actually looks for, why “ordinary and necessary” matters more than anything, and how going too far can distort your books, risk an audit, or even tank your business valuation.

In this conversation, you’ll learn how to confidently identify legitimate deductions, when to play it safe, and how to document expenses that will stand up in an audit. Whether you’re debating a truck purchase, deducting meals, or mixing vacation with a conference, Hunt shows you how to maximize tax benefits—without losing sight of the bigger financial picture.

If you’re ready to stop guessing and start using the tax code to your advantage, this episode will sharpen your perspective on every business expense you make.

What You’ll Learn in This Episode

• (00:00) The infamous question: “Can I write that off?”
• (02:18) Why “ordinary and necessary” are the IRS’s two magic words.
• (04:43) The peer problem: when shop-owner advice becomes risky.
• (06:54) The flat-screen and four-wheeler test—how intent changes everything.
• (09:11) Why write-offs save more than taxes—they protect cash flow.
• (11:17) Vehicles in your business: the registration rule that matters most.
• (15:41) Paying yourself back—how to legally reimburse tools and trucks.
• (17:57) Meals vs. meetings: the 50% vs. 100% deduction debate.
• (20:10) Turning vacations into business trips (the right way).
• (22:20) The dark side of deductions: audit risk and distorted books.
• (24:42) Why overdoing write-offs lowers your business valuation.

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: [e-mail]

Text Paar Melis @ 301-307-5413

Download a Copy of My Books Here:

• Wrenches to Write-Offs
• Your Perfect Shop 

Aftermarket Radio Network