Clark Schaefer Hackett’s Post

Is your manufacturing company maximizing tax savings? Consider a cost segregation study to accelerate depreciation deductions and boost cash flow. #TaxSavings #Manufacturing

Boost your manufacturing company's tax savings with a cost segregation study! Accelerate depreciation on facility components and maximize cash flow. #TaxStrategy #Manufacturing https://bit.ly/3z8VOrQ

Q4 is typically a busy quarter for new equipment purchases as businesses consider year-end tax implications and eligible tax shields. Should you be considering any equipment purchases or leases either now or in the near future? Happy to have a conversation!

Boost your manufacturing company's tax savings with a cost segregation study! Accelerate depreciation on facility components and maximize cash flow. #TaxStrategy #Manufacturing

Boost your manufacturing company's tax savings with a cost segregation study! Accelerate depreciation on facility components and maximize cash flow. #TaxStrategy #Manufacturing

It is mid-September. Time to start talking to our clients about Section 179 tax deduction. Get deductions on purchases of depreciable business equipment instead of capitalizing and depreciating the asset over a period of time. Example: New piece of machinery purchased for commercial use at $50,000. The company could take that asset and depreciate over the course of 5 years at $10k each year OR utilize Section 179 that would allow the company to WRITE OFF the entire $50,000 in the current year.

100% relief on purchases? Sounds good right? Read on :) Companies now have access to a new First Year Allowance, referred to as Full Expensing, after the cessation of the “super-deduction” capital allowance earlier this year. This new allowance enables companies to claim a 100% deduction for tax purposes in the year of spend on particular capital investments. This relief is of a temporary nature and will expire on 31st March 2026. However, companies that take advantage of this opportunity will be able to recover up to £250 of every £1,000 spent on capital expenditures against their tax liability. As a result, potentially seeing significant tax savings. FULL EXPENSING EXPLAINED Instead of spreading out tax relief over several years, businesses can speed up the process by claiming relief on qualifying expenses in the year the assets are purchased. This new relief enables companies to deduct eligible expenses from their taxes in the year of acquisition, rather than over an extended period of time. PLANT & MACHINERY FULL EXPENSING For qualifying plant and machinery main pool items, such as loose furnishings, plant and machinery, equipment and software, eligible companies will benefit from a 100% first year capital allowance. #plantandmachinerybuying #assetfinance #fullexpensing #capitalallowances #contactmetoday #speaktoyouraccountant 07931309808 jemma@equipmentfinance-uk.com

A writing down allowance is a type of capital allowance that allows businesses amd property owners to claim tax relief on certain assets they own and use for business purposes. This allowance is typically claimed against the profits of the business for tax purposes. Types of Writing Down Allowances: Main Pool: Most plant and machinery assets fall into this category. The annual rate of allowance varies depending on the type of asset, generally ranging from 6% to 18%. Special Rate Pool: This includes assets with a longer life or integral features of buildings. The annual rate of allowance for this pool is typically 6%.

If your company purchases equipment, you need to understand how when used together, the potential tax benefits of #Section179 and #BonusDepreciation still allow businesses to deduct up to 100% of some capital purchases. See the updated limits for 2024 and contact me to understand how to take advantage of these benefits immediately.

A cost segregation study may cut taxes and boost cash flow Is your business depreciating over 30 years the entire cost of constructing the building that houses your enterprise? If so, consider a cost segregation study. It may allow you to accelerate depreciation deductions on certain items, thereby reducing taxes and boosting cash flow. And under current law, the potential benefits are now even greater than they used to be due to enhancements to certain depreciation tax breaks. You may even be able to get the benefit of faster depreciation for items that were incorrectly claimed. But cost segregation studies aren’t the best move for every business. Contact us to determine whether this strategy would work for your business. https://bit.ly/3OlqQih #costsegregation #businessconsulting