June CFO Client Update

✉️ June CFO Client Update

Bonus Depreciation Is Here to Stay

There’s been a major development out of the Senate that could benefit your business — especially if you’re planning any large purchases this year.

✅ 100% Bonus Depreciation is Poised to Become Permanent

No phase-out. No sunset.
Just full, immediate expensing for qualifying assets like vehicles, equipment, and machinery.

This change offers a strong incentive to invest strategically, with the flexibility to plan year-round — rather than reacting at year-end.

🚗 Real Scenario: Buying an $80,000 Vehicle

We recently helped a client navigate this decision. Here's how the math worked out:

🔹 Scenario A: Paid in Cash

• Full $80,000 qualifies for bonus depreciation

• At a 37% tax rate = $29,600 in tax savings

• But business ties up $80,000 in cash = reduced liquidity

🔹 Scenario B: Financed Over 5 Years

• Still eligible for the same $29,600 deduction in Year 1

• Cash preserved for operations, hiring, or project investments

• Monthly loan payments spread out the cost

💡 Our Take:
For many clients, financing offers the best of both worlds — same tax benefit + stronger cash flow flexibility.

📈 What This Means for You

If the legislation passes as expected, we’ll have long-term clarity around bonus depreciation.
That means we can bake it directly into your ongoing financial strategy instead of treating it as a last-minute tax move.

Here’s how we’re helping:

• 🧮 Scenario planning – Cash vs. financing comparisons

• 📊 Rolling forecasts – Real-time impact to working capital

• 🧭 Strategic sessions – Align purchases with tax + cash planning

🛠️ Planning a Purchase? Let’s Talk First

Thinking about:

• Adding vehicles or heavy equipment?

• Investing in tech or new infrastructure?

• Scaling capacity ahead of busy season?

We’re always here to help you run the numbers. Let’s make sure your strategy works for both growth and liquidity.