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Category: Taxation-Corporate

November 14, 2022

Why Your Dealership Needs Good LIFO Records

  Recordkeeping is often essential to business operations and automobile dealerships are no exception. Many auto dealerships use the Last-In, First-Out (LIFO) method of inventory accounting. Although the LIFO method can provide significant tax benefits, you must be careful to meet certain tax law requirements. One such requirement that is often overlooked is the need to maintain comprehensive records. There are different LIFO methods for new and used vehicle inventories. For new vehicle inventories, dealerships electing to use the alternative… Read more ›

November 14, 2022

Navigating the Updated Clean Vehicle Tax Credits

  When President Biden signed the Inflation Reduction Act bill into law in August 2022, the Electrical Vehicle (EV) tax credit underwent immediate and long-term changes. Knowing what is coming and how to work with your clients under contract and future customers will be paramount to providing exemplary service and accurate information. The new clean vehicle credit rules Dealership challenges to be aware of The National Highway Traffic Safety Administration (NHTSA) has a VIN decoder to help dealerships and customers… Read more ›

October 27, 2022

What Do the 2023 Cost-of-living Adjustment Numbers Mean for You?

The IRS recently issued its 2023 cost-of-living adjustments for more than 60 tax provisions. With inflation up significantly this year, many amounts increased considerably over 2022 amounts. As you implement 2022 year-end tax planning strategies, be sure to take these 2023 adjustments into account. Also, keep in mind that, under the Tax Cuts and Jobs Act (TCJA), annual inflation adjustments are calculated using the chained consumer price index (also known as C-CPI-U). This increases tax-bracket thresholds, the standard deduction, certain… Read more ›

October 24, 2022

The Impact of the Inflation Reduction Act and New IRS Rules on Taxation and Retirement Savings in 2023

As Councilor, Buchanan & Mitchell recently reported, the Inflation Reduction Act has created deductions for energy-efficient construction especially concerning the Section 179D deduction for commercial buildings and the Section 45L credit for residential homes. The Inflation Reduction Act has created additional adjustments in 2023 taxpayers should be aware of including to the standard deduction and other provisions. More recently on Friday, October 21, the IRS also announced a generous increase in the 2023 annual contributions to a 401K account. Read… Read more ›

October 21, 2022

Inflation Reduction Act Expands Deductions for Energy-efficient Construction

Mitigating the adverse effects of climate change is one of the primary targets of the recently enacted Inflation Reduction Act (IRA). To that end, the legislation is packed with tax incentives, including the significant expansion and extension of two tax deductions for energy-efficient construction. The changes to the Section 179D deduction for commercial buildings and the Section 45L credit for residential homes increase their potential value and make them available to more taxpayers than ever before. Sect. 179D Deduction The… Read more ›

September 30, 2022

Inflation Reduction Act Expands Valuable R&D Payroll Tax Credit

When President Biden signed the Inflation Reduction Act (IRA) into law in August, most of the headlines covered the law’s climate change and health care provisions. But the law also enhances an often overlooked federal tax break for qualifying small businesses. The IRA more than doubles the amount a qualified business can potentially claim as a research and development (R&D) tax credit to offset its payroll tax for tax years starting after 2022 — to a maximum of $2.5 million… Read more ›

September 26, 2022

Taking a Page Out of History and Collecting a Valuable Tax Break

Have you always wanted to buy rental property and become a landlord? As you can imagine, putting up with some tenants can be a pain in the neck. But the discomfort can be eased by the valuable tax breaks available to rental property owners. In fact, favorable tax laws are one big reason why so many fortunes have been made in real estate. Another big reason is that leveraging real estate investments with mortgages can multiply profits. But for purposes… Read more ›

September 26, 2022

Encourage Legacy Gifts to Your Not-for-Profit

If your not-for-profit focuses most of its fundraising energy on donors who can contribute to your mission and programs now, you may have neglected legacy gifts. Such gifts represent a portion of wealthy donors’ estates that go to your organization on their death. Legacy gifts can help position your nonprofit for sustained growth well into the future. Let’s take a closer look at the hows and the whys. Mechanics of Giving The vast majority of legacy gifts are made through… Read more ›

September 26, 2022

Applying for Private Business Loans with Confidence

Business borrowers aren’t just facing higher interest rates today. The terms of new loans have also become more restrictive. Nearly a quarter of senior loan officers reported tighter standards for commercial and industrial loans in the Federal Reserve’s second-quarter survey on bank lending practices. As banks rein in their lending practices, it’s important for business owners to put their best foot forward when they apply for credit. Here’s how to position your business in the best possible light on a… Read more ›

September 23, 2022

What to Do When Outstanding Rebates Become Over-Aged

Vehicle rebates are a selling tool car dealerships and manufacturers use to drive more business, even when most consumers are paying above sticker price on vehicles. Since rebates are not discounts or coupons, dealerships receive the funds from the rebate after the vehicle has been purchased from the manufacturer and sold to a consumer. This means accounting teams at the dealership must make adjustments once the rebate is received. When rebates are not paid for promptly, it can create over-aged… Read more ›