The Tax Cuts and Jobs Act of 2017 (TCJA) is causing many businesses to take a fresh look at their equipment acquisition planning.
To answer some of the questions raised by the first tax overhaul in three decades, Key Equipment Finance has created a white paper that explains tax reform's impact on the equipment acquisition strategies of businesses.
For an organization deciding to acquire assets, leading-edge technology, timeliness and scalability all play an important role. However, there has never been a single, best answer to the question of how to pay for equipment.
Enter Tax Reform
While corporations have historically identified successful go-to strategies to optimize equipment-related tax legislation, tax reform has changed the playing field. From 100% expensing to the elimination of corporate AMT, the new rules require a fresh look.
The Tax Cuts and Jobs Act of 2017 won't change the tried and true benefits of leasing that have always supported business growth, including enhanced cash flow, unparelleled flexibility and asset-management features, and prerservation of credit lines.
Still, the historic tax reform requires important considerations, from the top down, including the impact on tax liability, the range and size of available corporate tax deductions, expensing, interest expense deductions, alternative minimum tax, net operating loss carryforwards, investment tax credits, and more.
To learn more about these, visit this page to download our white paper: