Editor’s Note: The RV Industry Association has emailed its members the following notice to help in asking Congress to restore floorplan deductibility.
Last year’s tax reform bill provided much needed relief for small businesses; however, a last-minute definition change in one section of the bill unintentionally resulted in effectively removing travel trailers from the definition of “motor vehicle” for the purposes of floorplan financing deductibility of the RV trailer dealer’s floorplan costs.
New legislation, the Travel Trailer and Camper Technical Corrections Act (S.3600 & H.R.6969), has been introduced to ensure that towable RVs are included in the floorplan interest financing deductibility. RVIA is requesting its members ask their member of Congress to support the legislation.
The proposed changes in the bills impact RV trailer dealers with more than $25 million in annual sales. Other dealers, including boats, motorhomes, conversion vans, motorcycles and automobiles, can fully deduct interest paid on their inventory floor plans. However, RV trailer net interest deduction is limited to 30 percent of earnings before interest, taxes, depreciation, amortization and depletion, according to RVIA.
It is estimated that four out of every 10 dollars spent at an RV retail establishment is generated by a dealer with $25 million or more in annual sales.
Those interested in participating can click here.
