Capital Expenditures

Developing a capital expenditure budget is one of the most important planning exercises a business can undergo.  It is a deliberate plan for how to best invest in your business.  Whether you are a small business owner doing it on your own or you have a seasoned finance executive to help weigh your needs and resources, considering the tax implications of the One Big Beautiful Bill's (OBBB) extension of bonus depreciation is critical.

Purchases that meet the definition of qualifying property acquired after January 19, 2025 are eligible for 100% depreciation.  This can have a very meaningful financial impact for business owners making investments into machinery, vehicles, and other equipment.  Furthermore, the benefits of cost segregation studies for real estate owners are considerably more valuable.  This allows business owners to keep more money in the company rather than cutting a significant check to satisfy a tax bill.

However, taxes are only one component of decision making.  Although tax professionals love to advise clients on tax saving strategies, your capital expenditure plan is too critical to be painted with a broad brush.  Some other critical considerations include your operating cashflows, financial covenant restrictions, debt servicing capabilities, and disruptions in your operations.

At Apollo Accounting and Advisory, we don't just help our clients plan for their taxes. We are also experienced financial executives that can help with developing a capital expenditure plan, operating budgets, and bank reporting requirements.  Do you have a good handle on your ability to meet financial covenants while taking advantage of the OBBB's bonus depreciation provisions? If not, contact us here for a free consultation.