McLEAN, Va. -

Along with updating store principals about important tax benefits that expire at the end of the year, the National Automobile Dealers Association named a new chief economist on Tuesday.

Taking on the role is Steven Szakaly, who arrives with more than 10 years of forecasting and industry analysis experience to NADA. Previously, Szakaly led economic forecasting at Cliffs Natural Resources in Cleveland.

“Steven brings several years of experience working in economics and the auto industry,” NADA president Peter Welch said. “As the industry and economic environments continue to change, his analytical-thought leadership will benefit the membership as well as add to public policy discussions.”

Szakaly also has worked with General Motors in powertrain forecasting in Detroit and was an economist with the Center for Automotive Research in Ann Arbor, Mich. He began his career as an associate economist with the Federal Reserve Bank of Chicago.

Important Vehicle and Equipment Tax Benefits Expiring at Year End

NADA officials also mentioned important tax benefits for dealers and their business customers are set to expire at the end of 2013.

The association highlighted qualifying businesses can immediately expense certain equipment and software purchases this year, instead of depreciating the cost over several years. Under Section 179 of the Internal Revenue Code, businesses may deduct a total of $500,000 of certain equipment purchases made in 2013, subject to certain restrictions and a phase-out.

Additionally, NADA explained, 50-percent bonus depreciation on equipment purchases is in effect until the end of 2013. The increased depreciation under these rules for vehicles is similarly set to expire Dec. 31.

“The Section 179 and bonus depreciation incentives can also be combined. However, it is important to note that the availability and combination of these incentives are subject to complex rules,” NADA said.

“For example, the vehicle bonus depreciation is subject to certain vehicle type, business use and weight restrictions,” the association continued. “Therefore, dealers are encouraged to speak with their accountants and should encourage their business customers to do the same regarding the expiring incentives.

For more information from the IRS, click here, and from NADA, click here.

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