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3 Things You Didn't Know Affected Tire Tax What is a tire tax? Tire tax, also known as scrap tire fee, solid waste fee, and tire disposal tax, is a fee imposed on the sale of a new tire or replacement of an old one. Proper disposal requires significant state or local resources, justifying the collection of this fee. Retailers collect the tire tax at the time of sale and remit it to state-level programs that fund tire disposal. Essentially, the tire tax is a disposal fee applied to new tire sales. Since it is regulated at the state and local levels, not every state has a tire tax, and those that do may apply it differently. The amount or application of a tire tax is determined by three main conditions: 1) Type of Tire 2) Tire Delivery Method 3) Customer exemptions Allyn’s tax team is staffed with seasoned tax professionals and consultants experienced in all aspects of Federal, multi-state and local tax compliance and consulting for large U.S. and global corporations. We use that experience to your advantage. Allyn files state and local tax returns in every U.S. taxing jurisdiction, managing the entire process from data acquisition and analysis to return filing and tax payment. Our tax professionals are well-versed in technical sales tax regulations, procedures, and practices. We ensure you remain fully compliant with state and local tax laws while minimizing your tax liability. Click the link to read more: https://lnkd.in/eKbkzHnj

General Motors is more profitable than you’d think. And pays a lot less tax too. Per the Company’s 2023 10-K, its pre-tax income was $9.9 billion. Not a fluke either – it earned $10.8 billion in pre-tax income in 2022 and $11.4 billion in 2021. What’s even more interesting, though, is on that beefy 2023 profit, it only accrued $563 million of income taxes. An effective tax rate of 5.7%. Or, more than 15% below the U.S. statutory tax rate of 21%. So, what gives? Well, in 2023, there were two primary drivers to GM’s paltry effective tax rate (ETR). First, tax credits and manufacturing incentives drove a $966 million tax benefit, reducing the ETR by 9.7%. GM is incentivized by both the U.S. and foreign governments to invest in research and development, as well as its manufacturing infrastructure in order to create jobs, spur economic growth, etc. In exchange, the U.S. and foreign governments provide for tax credits that reduce GM’s income tax liability on a dollar-for-dollar basis. Second, in 2023, GM released its valuation allowance related to its operations in Korea as a result of improving profitability in that country. This drove a $870 million tax benefit, reducing the ETR by 8.7%. A valuation allowance is a mechanism to reduce a company’s “deferred tax assets” – or items representing a future tax benefit – if the company believes it won’t be able to realize a benefit from those assets due to continued losses. When they initially established the valuation allowance, they had to recognize more overall tax expense at that time. When the Company released this, they essentially reversed the additional tax expense recorded and triggered a benefit. Combined together, these items resulted in a banner year for GM’s ETR. -- If you want to see me break down companies' tax provisions and learn more about the fascinating world of ASC 740, follow along. Need a hand with your company's tax provision? Just drop me a message!

2024 Year-End Vehicle Purchase Tax Guide For vehicles over 6,000 pounds in Gross Vehicle Weight (GVW), you may be eligible for the following tax deductions: ·   Up to $30,500 under Section 179 ·   60% of the purchase price (even if financed). This percentage will decrease to 40% starting in 2025) For vehicles under 6,000 pounds in GVW, the potential tax deductions are as follows: ·   $20,400 in the first taxable year ·   $19,800 in the second taxable year ·   $11,900 in the third taxable year ·   $7,160 for each subsequent year Electric and Plug-in Hybrid Electric Vehicles may qualify for an additional $7,500 federal tax credit. Key Notes: ·   These deductions apply only to business taxpayers. ·   All deductions are capped at the purchase price of the vehicle. ·   Ensure that the vehicle purchase makes economic sense for your business before moving forward. ·   Eligibility requirements under the U.S. tax code apply to all the above provisions.

Article 5 of 7 – Tax implications of using a vehicle for business   Today we look at tax implications of common methods of finance for a commercial / van – Lease, Hire Purchase & PCP.   A simple example – a van retails for €36,900 – (€30,000 + €6,900 VAT). With HP you can claim back all the VAT on day 1 whereas with say a 36 month lease you claim back the VAT over the 36 months.   But what about the €30,000? With HP you will write that off over 8 years whereas with the 36 month lease you will write if off over 36 months (plus a nominal secondary amount for a further 5 years).   Summary: While HP offers an initial cash flow advantage on VAT the lease will result in a quicker tax deduction for the full cost.   There is also PCP, although this is more common for cars. If used for a commercial it is more akin to a rental agreement for tax – VAT reclaimed each month and net payments straight to the P&L a/c. If used for a car the amount claimed for tax will be linked to emissions.   Tomorrow we look at claiming tax free mileage payments in a Ltd. Company when you use a personal car for business journeys.   This series of articles are for illustrative purposes only and do not constitute professional advice. To get in touch please e-mail [email protected].   FHM Accountants are an online, pro-active, award-winning firm of Chartered Certified Accountants, Business Mentors & Registered Auditors with physical offices in Wexford, Wicklow and Longford serving clients throughout the Republic of Ireland.

The tax treatment of double cab pick-up vehicles (DCPUs) has been clarified as part of the recent Budget announcements. This follows a chequered history of the tax treatment of DCPUs after a 2020 Court of Appeal judgment and after the previous government reversed its plans to overhaul the tax treatment of these vehicles. #DoubleCabPickUps #VehiclesTax

The tax treatment of double cab pick-up vehicles (DCPUs) has been clarified as part of the recent Budget announcements. This follows a chequered history of the tax treatment of DCPUs after a 2020 Court of Appeal judgment and after the previous government reversed its plans to overhaul the tax treatment of these vehicles. #DoubleCabPickUps #VehiclesTax

Article 5 of 7 – Tax implications of using a vehicle for business   Today we look at tax implications of common methods of finance for a commercial / van – Lease, Hire Purchase & PCP.   A simple example – a van retails for €36,900 – (€30,000 + €6,900 VAT). With HP you can claim back all the VAT on day 1 whereas with say a 36 month lease you claim back the VAT over the 36 months.   But what about the €30,000? With HP you will write that off over 8 years whereas with the 36 month lease you will write if off over 36 months (plus a nominal secondary amount for a further 5 years).   Summary: While HP offers an initial cash flow advantage on VAT the lease will result in a quicker tax deduction for the full cost.   There is also PCP, although this is more common for cars. If used for a commercial it is more akin to a rental agreement for tax – VAT reclaimed each month and net payments straight to the P&L a/c. If used for a car the amount claimed for tax will be linked to emissions.   Tomorrow we look at claiming tax free mileage payments in a Ltd. Company when you use a personal car for business journeys.   This series of articles are for illustrative purposes only and do not constitute professional advice. To get in touch please e-mail [email protected].   FHM Accountants are an online, pro-active, award-winning firm of Chartered Certified Accountants, Business Mentors & Registered Auditors with physical offices in Wexford, Wicklow and Longford serving clients throughout the Republic of Ireland.

The tax treatment of double cab pick-up vehicles (DCPUs) has been clarified as part of the recent Budget announcements. This follows a chequered history of the tax treatment of DCPUs after a 2020 Court of Appeal judgment and after the previous government reversed its plans to overhaul the tax treatment of these vehicles. #DoubleCabPickUps #VehiclesTax

The tax treatment of double cab pick-up vehicles (DCPUs) has been clarified as part of the recent Budget announcements. This follows a chequered history of the tax treatment of DCPUs after a 2020 Court of Appeal judgment and after the previous government reversed its plans to overhaul the tax treatment of these vehicles. #DoubleCabPickUps #VehiclesTax

The tax treatment of double cab pick-up vehicles (DCPUs) has been clarified as part of the recent Budget announcements. This follows a chequered history of the tax treatment of DCPUs after a 2020 Court of Appeal judgment and after the previous government reversed its plans to overhaul the tax treatment of these vehicles. #DoubleCabPickUps #VehiclesTax