Are dealers exempt from the interest hike in tax reform bill?

[ryan.gerardi]

According to this piece on DrivingSales, the NADA successfully lobbied to get dealers exempt from the hike on interest rates for business loans, which is part of the new tax reform bill.

http://www.drivingsales.com/news/auto-dealers-get-last-minute-tax-break/

I'm going to look into this more but was curious who has additional information around this.

 

[jscole86]

According to this piece on DrivingSales, the NADA successfully lobbied to get dealers exempt from the hike on interest rates for business loans, which is part of the new tax reform bill.

http://www.drivingsales.com/news/auto-dealers-get-last-minute-tax-break/

I'm going to look into this more but was curious who has additional information around this.

It's no different than how it's been. Currently, dealers are allowed to deduct all the interest-only expense related to their floor plan lines in a given year. Originally, this new tax bill was written to say that dealers can only deduct 30% (instead of 100%) of the interest-only expense they had for a given year. So nothing is changing from how it's been, thankfully, because that is a huge chunk of expense for a franchise dealer usually.