Optional Tax Methods for Demo Use Require Written Policy

Optional Tax Methods for Demo Use Require Written Policy

NADA says that dealers who want to exclude all or part of a full-time salespersonês income from taxation for demo use using the new simplified optional method need to have a qualified written demo policy on the use of demonstrator vehicles. This policy also must have been communicated to their salespersons. The IRS has sample policies dealerships may use at Appendixes A and B of Revenue Procedure 2001-56, available through www.nada.org. Select Member Services, and click on Government Affairs, then Regulation to find the link. For a summary of the procedure, dial NADA fax-on-demand, 800/778-7209, and request document 84.

Studebaker to Return as an SUV

The Studebaker name is about to be resurrected in the U.S. on of all things a sport-utility vehicle, according to the Detroit News. Michael Kelly, chairman and CEO of Avanti Motor Corporation and owner of the Studebaker name, says the newest Studebaker will debut in April 2003 and most likely will be introduced at the New York Auto Show. Kelly says the new Studebaker is built on an all-new platform. Its debut coincides with the 40th anniversary of Avanti, the last new passenger car introduced by Studebaker before the U.S. automaker, then based in South Bend, Indiana, went out of business in the mid-1960s.