With many changes continuing to take place in the transportation industry, our team is committed to keeping you up-to-date with information that may impact your company.

In this edition of The Tax Route newsletter, we cover the new ruling on powered glider kits, business succession planning, and the recent IRS update on business travel per diem rates. Our transportation team will also be attending the IMTA Management Conference on September 14 and 15. We look forward to seeing you there!
POWERED GLIDER KITS RULING
The Seventh Circuit Court of Appeals recently reversed a lower court ruling as it pertains to excise tax on powered glider kits. The court determined that the use of glider kits does not define a “new vehicle,” and as long as the repairs do not exceed the safe harbor amount from section 4052(f) of 75% of the retail price, the refurbishment is not subject to the 12% excise tax. “Retail price” was defined as “the market price in ordinary, arms-length transactions, of a single comparable vehicle. Click here for more details on this ruling.
BUSINESS SUCCESSION PLANNING
This summer, Managing Shareholder Dan Schwarz presented to the Iowa Motor Truck Association (IMTA) on business succession planning. Dan reviewed the basics of succession planning, the process of how and when to begin planning, and how value is determined for the business. Check out the recording of his presentation here.
BUSINESS TRAVEL PER DIEM RATES
The IRS recently issued its annual update of special per-diem rates for substantiating ordinary and necessary business expenses incurred while traveling away from home (Notice 2021-52). The new rates are in effect from Oct. 1, 2021, to Sept. 30, 2022, and include the transportation industry meal and incidental expenses rates, the rate for the incidental-expenses-only deduction, and the rates and list of high-cost localities for purposes of the high-low substantiation method. Click here to learn more about the per-diem rates.
UPCOMING EVENT: IMTA Management Conference
Members of our Transportation Team are excited to attend the IMTA Management Conference on Tuesday, September 14 and Wednesday, September 15. We are looking forward to seeing old friends and meeting new connections within the industry. We hope to see you there!
Please reach out to us with any questions you may have on the topics above or any questions about the Transportation industry. We're always happy to help!
Managing Shareholder
Manager
Senior Accountant