Page 44 - GIADA-May-2018-Final

FINANCE

How the Tax Cut and Job Act (TCJA)

Affects Used-Car Dealers

Q & A with Robert L. Burt, CPA

By Jordan Head, Marketing and Public Relations Manager at GIADA

With the passing of Tax Cut and Job Act for both new and used-car dealers. Robert for new equipment only. The new law
(TCJA), we know you’re probably unsure explains how the new tax structure will includes both new and used equipment.
about how the new reform affects you and affect used-car dealers in the near future. There’s a new category under the new law
your used-car business. Not to worry, at called qualified improvement property.
Georgia Independent Automobile Dealer’s Q. How will the new tax structure directly This is a leasehold improvement and
Association (GIADA), we’ve got you affect used car dealers? it doesn’t include an enlargement to a
covered! A. The new tax structure will affect used- building, escalator or internal structure. If
car dealers in several ways, one of which you acquire qualified used property that
Robert L. Burt, Certified Public Accountant is depreciation. The 179 expense has isn’t one of the items mentioned, it would
and owner of Robert L. Burt, CPA, provides increased from $500,000 to $1,000,000,000. be subject to the 100 percent depreciation.
professional services in accounting, Keep in mind, there are limitations to this Dealers can expense any fixed asset they
bookkeeping, income tax, payroll, quick write off, one being the deduction is limited buy and plan to service as long as they
books support and IRS auditing. As a to net income. Bonus depreciation has qualify under new regulations.
CPA, he’s spent approximately 33 years in increased from 50 percent to 100 percent
accounting with 25 of those years working of qualifying property. The old law was Dealers may have the option to change

42 | GIADA Independent Auto Dealer MAY 2018