What is the Floor plan financing exception?

The floor plan financing exception allows certain dealers to deduct interest on loans used to finance vehicle inventory without the usual Section 163(j) business interest limitation. OBBBA Section 70303 expands the definition of motor vehicle to include certain towable recreational trailers and campers for tax years beginning after December 31, 2024. RV and trailer dealers should coordinate the exception with Vehicle expenses, depreciation, and inventory financing records before filing.

Related Terms

What is Vehicle loan interest?

What is Depreciation?

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Late S election

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Late C election

A Late C Election is a request to the IRS for C corporation status after the deadline.

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Clean vehicle

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Residential clean energy

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Augusta rule

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Roth 401k

Roth 401(k) lets employees and individuals make after-tax retirement contributions, offering tax-free growth and withdrawals.

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