Year End Tax Planning for Dealers-Year End Tax Planning for Dealers

Video Transcription

Video Summary

In this video, tax expert Rex Collins discusses several important tax planning strategies for dealership owners. He begins by highlighting some changes resulting from the Trump Tax Act and how they impact dealerships. He covers topics such as the new tax rates for C-Corporations, the 20% deduction for pass-through business income, and the changes to like-kind exchange treatment.<br /><br />Collins also discusses the new limitations on business interest expenses and their impact on dealerships. He explains how the net operating loss deduction has changed and how dealerships can take advantage of section 179 expensing.<br /><br />Additionally, Collins addresses the issue of economic nexus, which impacts dealerships doing business with customers from states other than their own. He explains that this ruling requires dealerships to collect and remit sales tax in states where they have economic nexus, even if they don't have a physical presence there. Collins emphasizes the importance of understanding the sales tax rates in different jurisdictions and staying compliant with their regulations.<br /><br />Finally, Collins touches on other dealership-specific tax issues to consider, such as entertainment expenses, dual-use property, and the Work Opportunity Tax Credit. He also cautions dealership owners about potential audit activities and provides tips for minimizing their exposure.<br /><br />Overall, Collins provides a comprehensive overview of the key tax planning considerations for dealership owners and offers his contact information for further assistance.

Keywords

tax planning

dealership owners

Trump Tax Act

tax rates

C-Corporations

pass-through business income

like-kind exchange treatment

business interest expenses

economic nexus

sales tax