All of the photos from last week's MADA Summer Business Convention are now available for viewing on our photographer, Bill Adkins', website.

To view, follow these short steps:

1. On the website, click on the "Events" folder (the third one down on the home page). 
2. Find and click on the "Maryland Automobile Dealers Association" folder. 
3. In the folder, you will see one for "2014 MADA Convention" folder.  Click on this folder and use the password "mada" (all lower case).

You should be able to right-click on any of the photos and download the full size files directly to your computer. Photos may also be purchased via the website.

Enjoy a small sample below... 

Paul Allen, Shockley Honda; Sam Weaver, Chevy Chase Cars; Lois Aschenbach, King Automotive Group; and Marisa Shockley, Shockley Honda sharing an after dinner laugh

Joe Jankowski, Armada Dealer Solutions; Rob Adams and Donna Sproles with CVR; and Kristin O'Donnell, WANADA

John O'Donnell, WANADA; Travis Martz, MADA; Conrad Aschenbach, King Automotive Group; and Peter Kitzmiller, MADA

The IRS National Tax Office has issued an advice memorandum outlining their position on the taxability of amounts received by dealers from automobile manufacturers to pay for store improvements. The IRS will classify monies received from manufacturers under facility image upgrade programs as taxable income.

Automobile manufactures incentivize dealers to change or upgrade their stores by offering reimbursement for a portion of the cost of improvements that meet manufacturer requirements. In the past, some dealers have argued that these amounts represent reimbursement of improvement costs and are therefore a reduction of the improvement costs and not income. The IRS disagrees.

In their latest announcement on this issue (Advice Memorandum AM-2014-004), the IRS will treat these incentive payments as taxable income. The IRS defends its position by stating the manufactures are paying for improvements to dealer owned property and as a result the dealers benefit economically from the incentive payments. As worded in the advice memorandum, "...the dealerships have an accession of wealth...accordingly the dealerships must recognize gross income..."

The IRS also reasons that the reimbursements are taxable income because the dealers are being compensated by manufacturers for making the improvements with the manufacturer's objective of selling more cars to the dealers, making the payments a direct benefit for the manufacturers thus meriting that the dealers be compensated.

If you have any questions about this or other tax-related matters, please contact either:

•  John R. Comunale, CPA, Director of Automotive Dealership Services - 301.986.0600 jcomunale@cbmcpa.com 
•  Richard E. Morris, CPA, MST, Director of Tax Services - 301.986.0600 x122/rmorris@cbmcpa.com 

Farmers Insurance Group. Providing insurance options to dealers in Maryland. 600 Red Brook Blvd., Suite 200, Owings Mills, MD 21117. Colin Wheeler, Manager, 410.371.5609, or email: Collin-wheeler@farmersinsurance.com. Jim Perry, ADM, 410.780.2736, or email: jim-perry@farmersinsurance.com.

Nominations are now being accepted for the 2015 TIME DEALER OF THE YEAR AWARD (TDOY), which will be presented at the National Automobile Dealers Association Convention in January 2015.

If you know a dealer who should be considered as a nominee for the 2015 TIME Dealer of the Year Award, please complete and return the attached form. The nominee for Maryland will be selected by the Committee, which consists of the last five recipients of the award.

Nominee Requirements:

• Be a franchised new car dealer.
• Be a member of the National and State Automobile Dealers Associations.
• Is the actual operating head of the dealership as designated in the franchise paragraph of the factory agreement, or the owner's designated agent with full authority for business operations for a minimum of one year with recognition by the sponsoring dealer association as the dealership's voting representative.
• Have a presence in the dealership offices, during at least 60% of business hours, actively managing the dealership.
• Have at least a five-year record of active participation in affairs of the nominee's state or local dealer Association.
• Agree to be available for participation in TDOY activity during the year following selection.

Complete the Nomination Form and mail or FAX by July 31, 2014 to::

Maryland Automobile Dealers Association

7 State Circle, Suite 301

Annapolis, Maryland 21401

or

410.269.1549 

MADA would like to thank and recognize the following dealerships who have contributed to the Association's Political Action Committee. If your dealership is not on the list, we urge you to get on board today! Your financial contribution allows us to support those Maryland legislators who have put our interests first and who have supported our industry in the past. We must have a presence in Annapolis, but unfortunately that costs money.

If you would like to send in your contribution today, please download the contribution form and return it today. You may provide a corporate check payable to MNCTDA/PAC and send it to RSM McGladrey, 100 International Dr., Suite 1400, Baltimore, MD 21202. If you have any questions, please contact Charlotte Rutkowski at the Association office, 800.526.7423.

GOVERNORS CLUB

BMW Porsche of Towson

Bob Bell Automotive Group

Chevy Chase Acura Nissan

Criswell Automotive

Fitzgerald Automotive Group

Ideal Buick GMC Hyundai

King Automotive Group

Sport Automotive

Thompson Automotive Group

Williams Family Automotive

SENATE CLUB

Baltimore Freightliner

Beltway International, LLC

Boyle Buick, Inc.

Capitol Cadillac Company

Freightliner of Hagerstown

Hagerstown Honda/Kia

Jones Junction, Inc.

Plaza Ford, Inc.

The Frederick Motor Company

Win Kelly Chevrolet Buick GMC

HOUSE CLUB

Academy Ford Sales

Adams Chrysler Dodge Jeep/Ram

Baltimore Mack Trucks, Inc.

Barr International

Bayside Chevrolet, Buick, Toyota

Bob Davidson Ford Lincoln

East West Lincoln

Hamilton Nissan

Hickory International, Inc.

Hinder Ford

K. Neal International Trucks

Keene Dodge Chrysler Jeep Ram

Kia of Waldorf

Miller Brothers Chevrolet Olds Cadillac

Northwest BMW

Northwest Honda

Shaffer Ford, Inc.

Timbrook Automotive

Toyota of Southern Maryland

West End Service, Inc.

Wilkins Automotive

OTHER

Team One

 Keys to Shrinking WIP and Unapplied Labor

Date/Time: Thursday, July 17 at 1pm Eastern

Presenter: Ray Branch of The KEEPs Corporation

Cost: $149.00 per person