TIA has joined other global association leaders to support the critical global right to repair movement by signing the new right to repair position statement.
The statement enumerates the core beliefs of the movement and the objectives and intended outcomes of right to repair legislation. The document also sets forth 10 best practice principles to developing a framework for right to repair legislation that any supporting country can use and adapt them to their needs.
Globally, the automotive aftermarket keeps 1.5 billion vehicles on the road while contributing $1.8 trillion to the global economy.
After vehicles exit their warranty period, independent repair shops perform 70% of repairs. This vibrant industry and the consumer choice that it creates is being threatened by automotive manufacturers that block access to wirelessly transmitted vehicle repair and maintenance data.
Without the convenience and choice of independent parts and repair, especially in suburban and rural communities, consumers will have limited access to affordable vehicle service and repair.
These restrictions can have catastrophic effects on local economies and the well-being and safety of millions that rely on vehicle transportation daily.
In the U.S., the automotive aftermarket is a $492 billion industry employing 4.5 million professionals, according to the Auto Care Association.
Right to repair is a top priority for TIA members and for the global automotive aftermarket. Without safeguards, independent automotive repairers and vehicle owners will have fewer repair options, face longer wait times and pay higher prices when they repair their vehicles. It is crucial for independent auto repair locations to have access to the equipment and data needed to repair today’s highly technological vehicles and that consumers have a choice in where they get their vehicles repaired.
Both Australia and South Africa have successfully retained their drivers’ right to repair their vehicles. These countries are a model for similar legislation in the U.S. that levels the playing field and keeps the consumer at the heart of decision-making across the transportation ecosystem.
Read the full position statement HERE.
The Treasury Department and the Internal Revenue Service announced that they are soliciting feedback for upcoming guidance regarding the tax treatment of a nonfungible token (NFT) as a collectible under the tax law.
?The guidance also requests comments on the treatment of NFTs as collectibles and describes how the IRS intends to determine whether an NFT is a collectible until the further guidance is issued.
A nonfungible token (NFT) is a unique digital identifier that is recorded using distributed ledger technology and may be used to certify authenticity and ownership of an associated right or asset. Distributed ledger technology, such as blockchain technology, uses independent digital systems to record, share and synchronize transactions, the details of which are recorded simultaneously on multiple nodes in a network.
A token is an entry of data encoded on a distributed ledger. A distributed ledger can be used to identify ownership of both NFTs and fungible tokens, such as cryptocurrency, as described in Rev. Rul. 2019-24.
Section 408(m)(2) of the tax code provides for a specific list of items that constitute collectibles for certain purposes. Acquisition of a collectible by an individual retirement account (IRA) or individually-directed account of a qualified plan is treated as a distribution from the account equal to the cost to the account of the collectible.
Generally, collectibles also do not have as advantageous capital-gains tax treatment as other capital assets.
Until additional guidance is issued, the IRS intends to determine when an NFT is treated as a collectible by using a “look-through analysis.” Under the look-through analysis, an NFT is treated as a collectible if the NFT’s associated right or asset falls under the definition of collectible in the tax code. For example, a gem is a collectible under section 408(m); therefore, an NFT that certifies ownership of a gem is a collectible.
In Notice 2023-27, the Treasury Department and the IRS are requesting comments on any aspect of NFTs that might affect the treatment of an NFT as a collectible as well as certain comments specifically set out in the notice.