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Entries by Brett Breedlove

Indiana Changes Policy on Taxability of Documentation Fees

Posted 3:00 PM by
Indiana has recently issued an updated version of Sales Tax Information Bulletin #28S, changing its policy on the taxability of documentation fees, effective April 2, 2019. Historically, the Indiana Department of Revenue (IDOR) has treated these fees as if they were separate from the sale of the vehicle. It treated them as fees for helping a customer title and register a vehicle with the Indiana Bureau of Motor Vehicles (BMV). This is a nontaxable service in Indiana, so the documentation fees were not subject to sales tax. However, effective April 2, 2019, the IDOR will assume documentation fees are subject to sales tax if they are not “convenience fees,” a specific term that is defined in statute.
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How Revenue Recognition Is Impacting Buy Here – Pay Here Dealers

Posted 3:00 PM by
When the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, it represented perhaps the most extensive changes to accounting standards for revenue recognition ever. Experiencing a number of revisions and amendments since its issuance, the new guidance is effective for calendar years ending Dec. 31, 2018 for public companies and Dec. 31, 2019 for nonpublic companies; however, many have delayed analyzing how significantly the updated standards will impact their business.
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Preparing Your Buy Here – Pay Here Dealership for a Pain-Free Audit

Posted 4:00 AM by
If your Buy Here – Pay Here (BHPH) dealership has bank debt, there is a good chance your lender requires you to have a financial statement review or audit. With 2017 winding down, now is the time to evaluate your year-end closing checklist to help ensure a pain-free audit. Below are a few tips to make your upcoming audit a success.
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Buy Here - Pay Here Update: Lenders Continue to Pull Back on Subprime Auto Lending

Posted 12:47 PM by
Many media outlets have reported about the imminent subprime auto loan bubble burst, warning that the economy is set on a collision course for the next big credit crisis. While some Buy Here-Pay Here (BHPH) operators are bracing for impact, others see this as a sign that the worst is behind them and of opportunities ahead.
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New Accounting Guidance for Credit Losses Is Coming, Should I Panic?

Posted 12:00 PM by
Well…maybe. The allowance for credit losses is the most significant estimate on any set of BHPH financial statements. Since June 2016, when the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) amending the accounting guidance for measuring and recognizing credit losses, many industry accounting practitioners remain conflicted as to the impact this ASU will have on financial reporting practices and some dealers are wondering what this new ASU means for them.
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Is Your Real Estate Fund a True Investment Company or Just an Operator?

Posted 3:04 PM by
As the stock market has shown volatility over the last several years, many high-net worth, sophisticated and institutional investors have used various forms of alternative investments to supplement their portfolios. A popular investment choice has been real estate-related funds.
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