LIFO For Auto Dealerships In 2021: Is Relief On The Way?
By Zach Wimberger For dealers on the new vehicle Last-In, First-Out (LIFO) method, potentially significant levels of LIFO taxable income recapture from prior years have become a major focusing point for year-end tax planning as new vehicle inventories are generally at their lowest levels. While many dealers have already started to feel the burden of […]
Now What? Insight into Navigating the Automotive Industry’s Inventory Shortages in the Aftermath of the COVID-19 Pandemic
By Ken Rosenfield, CPA As we approach the final few months of 2021, we are receiving an influx of calls and emails from our automotive dealer clients about how to deal with waning inventory levels for the remainder of the year. One of our clients shared with us that their dealership is only receiving deliveries […]
Employee Retention Credit (ERC) Guidance for Dealerships in 2021
By Scott Lewis, CPA, MSA The employee retention credit (ERC), which is a refundable payroll tax credit for employers was established with the enactment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020. A comprehensive summary on the history and the Internal Revenue Service (IRS) guidance of the ERC can be […]
Final Regulations on Bonus Depreciation from IRS and Impact for Dealerships
by Scott Lewis, CPA, MSA The last set of final regulations from the IRS to implement the 100 percent additional first-year depreciation deduction, or bonus, was released in late September 2020 and clarified some final items, including some advantageous for auto dealerships. Bonus depreciation, which allows businesses to accelerate their tax deductions on the depreciation […]