LEGISLATIVE NEWS

INDIANA LEGISLATIVE UPDATE

by - Posted 4 years ago

EFFECTIVE JULY 1, 2016


DAYS FOR DELIVERY OF TITLE INCREASES TO 31 AND TEMPORARY PLATES INCREASE TO 45 DAYS


The Indiana Independent Automobile Dealers Association (IIADA) understood our member’s inability to provide customers with their title in 21 days and are pleased to announce that the law has changed!


The types and geographic locations of lenders, the geography of our customer base, mail delivery, and title processing have changed.  These changes are the reason we educated and worked with our Legislature to make delivery of title time requirements more reflective of business conditions.


CUSTOMER FINANCING has become specialized with sub-prime financing making up the majority of the financing market. These companies along with credit unions, state and nationally chartered banks have given us the ability to meet the needs of our individual customers.  However, the physical location of lenders can be most anywhere making it increasing difficult to get titles.  This is in contrast to times when the majority of lending was underwritten by a local bank or credit union, who held the title in their safe, all located down the street from the dealership.


INTERNET PRESENCE is now as important as physical location to most dealers.  Today’s customers are shopping your inventory online from other states and countries.  Buying habits have changed from the times when the majority of vehicle sales came from a customer driving by the dealership to see your inventory or seeing an ad in the local paper.  The logistics of delivering a title to a customer many states away increases the time needed to get the title to the customer.


CONSUMER PROTECTION remains in place.  The safeguards that protect a consumer purchasing a vehicle in Indiana include:

       *Indirect Retail Lenders – Lenders are continuously monitoring their dealers to make sure they are compliant and solvent.Floor Plan Inspections – Dealers who borrow money to finance their inventory are subject to regular inspection by their floor plan lenders. 

  • Dealer Inspections – Dealers are subject to inspections by the Dealer Services Division under the Indiana Secretary of State Office. 

     

  • Consumer Complaints – A bad “online review” can do a lot of damage to a dealer and his reputation. Indiana’s Attorney General investigates customer complaints against Indiana dealers.

     

  •  Dealer Bonds – Dealers must maintain a $ 25,000 to ensure clear title.

     

    WORKING TOGETHER we were able to get this legislation written and passed.  Fritz Kreutzinger, IIADA Legislative Chairman, laid much of the ground work for this legislation through the Motor Vehicle Advisory Board meetings with the Indiana Secretary of State. THANK YOU to the legislators who listened and heard our concerns.

     

    IIADA IS WORKING FOR YOU!

     

    FOR MEMBERSHIP IN THE INDEPENDENT AUTO DEALERS ASSOCIATION PLEASE CALL:  800.310.3112 OR SEE APPLICATION ON WEBSITE.


Good News for Small Business - Tax Udate

by: Jane Saxon, CPA with Somerset CPAs and Advisors

 

The IRS raised the "safe harbor" threshold from $500 to $2,500 for expensing certain capital items that would have previously required capitalization and depreciation.  Although the $2,500 threshold takes effect for the 2016 tax year, the IRS has indicated they will provide audit protection by not challenging the use of the $2,500 threshold in tax years prior to 2016.  This can be interpreted to mean businesses may use $2,500 in the preparation of their 2015 tax returns.   

This is great news for small business owners.  As a result of this change, a small business may now immediately deduct expenditures up to $2,500 that previously would have been spread over a several year period.  Common examples of such capital expenditures are notebooks, tablets, desktop computers, office equipment, office furniture, shop equipment and small tools. 

One thing to be aware of with this change is that although the IRS is not requiring capitalization of assets under $2,500; these assets are still considered personal property by the local taxing authorities and will still be subject to tangible personal property tax.   Business owners will need to develop a method of maintaining a listing of these assets for PPT reporting.

 

Somerset’s Dealership Team stays abreast of all changes impacting business owners. We believe a CPA should be proactive, not reactive.  Contact a member of Somerset's Dealership Team today to discuss how we can partner with you!

 Reach us by email at info@somersetcpas.com, or give us a call at 317-472-2183.