2013 Standard Mileage Rates Up 1 Cent per Mile for Business, Medical and Moving

WASHINGTON — The Internal Revenue Service today issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

• 56.5 cents per mile for business miles driven

• 24 cents per mile driven for medical or moving purposes

• 14 cents per mile driven in service of charitable organizations

Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
The rate for business miles driven during 2013 increases 1 cent from the 2012 rate.  The medical and moving rate is also up 1 cent per mile from the 2012 rate.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle.  In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.
These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical, or charitable expense are in Rev. Proc. 2010-51.  Notice 2012-72 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.

The October 2012 NIADA Legislative and Regulatory Reports

Please find the most up-to-date reports from the NIADA Lobbyist firm, Federal Advocates, Inc. of Washington, DC and the Law firm, MacMurray, Petersen & Shuster, LLP, of New Albany, Ohio.

• Legislative Update (Oct)
• Regulatory Update (Oct)

These reports are also available to you at any time on the NIADA website.  Members are notified of the latest reports every month via our association eNotes newsletter.  If you are not currently receiving our newsletter, please contact Angela Ledbetter at the NIADA office.

Are You Ready? 12.12.12

Big changes are coming to the Independent Auto Dealers Association next month. The countdown has begun and will all take place on 12.12.12. Follow the countdown on the IADA website at www.UtahDealers.org.

The September 2012 NIADA Legislative and Regulatory Reports

Please find the most up-to-date reports from the NIADA Lobbyist firm, Federal Advocates, Inc. of Washington, DC and the Law firm, MacMurray, Petersen & Shuster, LLP, of New Albany, Ohio.

• Legislative & Regulatory Update (Sept)

These reports are also available to you at any time on the NIADA website.  Members are notified of the latest reports every month via our association eNotes newsletter.  If you are not currently receiving our newsletter, please contact Angela Ledbetter.

NIADA Dealer 20 Groups is Your Answer to Dealer Success

Want to improve your skills as a successful dealer? NIADA 20 Groups are your answer!!! They are an ongoing educational experience led by NIADA’s Joe Lescota…especially designed for you.

 

The first organizing Group, made up of dealers who do BOTH RETAIL and BHPH sales, is forming and will meet October 11-12 at the Dallas-Fort Worth International Airport. Group member set-up fee is only $995 with a $310 monthly composite analysis fee that includes phone consultations with Joe when needed…

 

                 And Guess What?  It’s TAX-DEDUCTIBLE!!!

 

You’re running out of excuses as to why you cannot take steps to improve your financial statement’s “bottom line”…

• It’s convenient
• It’s affordable
• It’s tax deductible
• It's on-going

Visit niada.com to hear more from the introductory video and to download the application.  For information, call 800-682-3837or contact Joe Lescota, Director of Dealer Development orGeorgia Brown, Director of Education.

OfficeMax Partner AdvantageSM Program Available to IADA Members

NIADA has teamed up with OfficeMax to introduce the OfficeMax Partner AdvantageSM program. As a member of the NIADA, you will enjoy substantial savings from 31% to 88% off more than 12,000 in-stock products and 3,700 environmentally preferable products. Start saving today on office supplies, furniture, technology and printing services. To start saving now contact OfficeMax customer service via email at AdvantagePrograms@officemax.com or to order via phone, call 1-800.248.6343 to speak with an OfficeMax rep.

NIADA Partners with Warrantech to Administer its All-New Certified Pre-Owned Vehicle Program

The National Independent Automobile Dealers Association (NIADA) has selected Warrantech, an AmTrust Financial Services company, to administer its all-new NIADA Certified Pre-Owned Vehicle Program (CPO).  The NIADA CPO Program is the premier certification option for independent automobile dealerships seeking to more effectively compete in the Certified Pre-Owned vehicle market.     

Warrantech, a leading provider of extended service contracts for the automotive industry will administer the plan, handle and address all post-sale customer needs, customize dealer and consumer marketing materials and work closely with NIADA’s state affiliate network to launch the program nationwide in May 2012.  This partnership allows for a perfect mix of NIADA dealers committed to superior quality and service and an industry leading Warranty Company that can give them the products & support their customers are looking for. 

“Our research is telling us that 65% of consumers begin their vehicle search looking for a Certified Pre-Owned vehicle and that number is growing,” said NIADA CEO, Mike Linn.  “NIADA is committed to helping our members give customers what they are looking for and offer a top-notch buying experience for car buyers in their communities.  We see the NIADA CPO Vehicle Program as a primary way for NIADA members to further separate themselves from their competitors and give customers a better vehicle with additional peace of mind after the sale.”  

“In re-tooling the NIADA CPO Program, we recognized independent dealer business models vary widely and that we had to offer additional CPO options to specifically meet the operational demands of our dealers,” said Steve Jordan, NIADA Chief Operating Officer.  “Warrantech’s successful track record with independent auto dealers, varying product offerings, world-class claims operation, nationwide sales footprint and long term commitment to support the success of our dealer members made the partnership decision easy to make.” 

“Warrantech is honored to have been selected by the 66 year old NIADA as their CPO Program Administrator.  We applaud the time honored tradition of excellence that NIADA member dealers observe, including their adherence to a strict Code of Ethics,” said Sean Stapleton, CEO of Warrantech.  “We feel this commitment mirrors Warrantech’s dedication to excellence and drive to provide superior products and continued quality customer service.”

Warrantech Senior Vice President, Mike Burgholzer added, “By providing both administration and underwriting, the all-new NIADA CPO Program will help dealers become more profitable and grow their businesses by providing significant incremental revenue through the sale of additional vehicles and extended service contracts.”  Burgholzer continued, “Additionally, this new plan will help dealers continue to build customer loyalty by insuring the ongoing reliability of their purchases.  It’s a win-win for both the dealer and the consumer.”

With three unique plans under the NIADA CPO Program, dealers will be able to select the option that is right for their market and their customer base.  These options include:

• 3 month / 3,000 miles limited warranty          

- Includes 36 months / 36,000 miles engine and AC component coverage

• 6 month / 6,000 miles limited warranty          

- Includes 36 months / 36,000 miles engine and AC component coverage

• 12 month / 12,000 miles limited warranty

These NIADA CPO limited warranty options will include coverage of: engine, air conditioner, turbo or supercharger, automatic and manual transmission, transfer case, drive axle, steering components, select electrical components, and seals and gaskets.

For more consumer choice and confidence, the NIADA CPO limited warranty options above can be supplemented by adding the NIADA Total Care or the NIADA Total Care Plus coverage that includes: front and rear suspension, brakes, fuel system, cooling system, and additional electrical components.

In addition to this important coverage, NIADA and Warrantech will provide dealers with comprehensive sales training on how to utilize the CPO program to sell more vehicles and extended service contracts, as well as marketing support which will include in-store signage and promotional materials.   For additional information regarding the NIADA CPO program please call (877) 310-0288.