WANADA is planning to host a webinar for dealers in the near future that covers relief options for dealers who use the “Last in, First Out” accounting method for handling vehicle inventory. COVID-19 has upended dealers’ usual inventory flows, which according to a recent NADA webinar on the same topic, could impact up to 20 percent of all dealers.
WANADA will be sure to update our member dealers as soon as a webinar, which will be hosted by our friends at the CPA and advisory firm Councilor, Buchanan & Mitchell, P.C., is officially scheduled. You may also view the slideshow from the recent NADA webinar at this link.
NADA is currently asking the U.S. Treasury Department to provide affected dealers with additional relief under Section 473 of the Internal Revenue Code. Currently, businesses who terminate the LIFO accounting method, via IRS Form 3115, are barred from re-selecting it within the following five years.
As tax season approaches once again, we encourage all dealers to discuss their current tax options with their advisers. WANADA will follow up with more details about the upcoming LIFO webinar in the coming weeks.Download Bulletin PDF