Pain Point: New IRS Ruling Benefits Dealers

Resolution: UNICAP

The IRS decided that dealers don’t have to capitalize certain costs and can instead “expense them.” In a major victory for car and truck dealers, the IRS has created two safe harbors under its uniform capitalization, UNICAP, methods of accounting. The IRS decision favorably resolves several contentious and costly income tax issues. When some IRS auditors re-interpreted UNICAP 5 years ago, the affected dealers’ tax bill rose more than $100,000.

Watch the video explaining that most dealers will no longer face such exposure under the new IRS ruling.

For more information, download our UNICAP PDF.