How can your dealership deduct underwater inventory in 2023?
We all remember how used car prices plummeted in December 2022. Were you left wishing you had a way to deduct that loss now to help offset record profits?
The IRS does allow for the lower of cost or market inventory valuation. This would generally apply to used vehicles. If you are closing out the year and left with vehicles that will be sold at a loss next year – via this method, you can deduct those losses in the current year rather than waiting for the auto to sell.
If this sounds interesting to you, give your KT tax advisor a call today!