AFSA Members Should Qualify for Tax Deduction
On Oct. 1, AFSA wrote to the Internal Revenue Service (IRS) asking that it clarify that indirect finance companies qualify for a 20 percent deduction the way direct lenders do.
The IRS issued proposed rules establishing regulations to implement the 20 percent deduction for qualified business income for individuals, partnerships, S corporations, trusts, and estates under Section 199A of the Internal Revenue Code, as established by the Tax Cuts and Jobs Act of 2017.
The proposed rule raised some issues regarding the definition of “financial services” and “loans,” as well as the purpose of credit sales. AFSA letter emphasized the importance of a level playing field between all financial institutions engaged in consumer credit – banks, lenders, and finance companies.
October 1st, 2018 by Dan Bucherer