Daniel HonanFounder, Profitable Painter CPA PLLC · I help painting contractors increase profits & cash flow while reducing taxes♦ Bookkeeping ♦ Tax

Painting Business Owners: some final words on bonus depreciation. #SmallBizOwners #TaxTips

Name: Painting Business Owners: some final words on bonus depreciation. #SmallBizOwners #TaxTips
Uploaded: 2024-07-10T13:00:14+00:00
Duration: 3 s
Channel: Daniel Honan
Description: In this brief dialogue, the speakers advise painting‑business owners to approach depreciation strategically rather than automatically taking the maximum…

10 Jul 2024 · 0 min

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In this brief dialogue, the speakers advise painting‑business owners to approach depreciation strategically rather than automatically taking the maximum accelerated deduction. They stress the importance of consulting a tax professional and planning purchases before the end of the year because the bonus depreciation rate is slated to decline by 20% each year. Proactive tax‑planning can affect income‑tax liability, so timing asset acquisitions is crucial. The conversation ends with an invitation to join the private Facebook group “Grow Your Painting Business” for further questions and support.

are there any key takeaways we want to hammer home with depreciation?
My recommendation is think carefully about your depreciation. Talk about it with your tax pro. Simply taking as much accelerated depreciation as possible may not be in your best interest. I'm also going to recommend that you have this conversation well before the end of the year because you may choose to make some purchases before December 31st based on income tax liability, the fact that bonus depreciation is getting reduced by 20% each year. There's a lot of tax planning opportunities here, but we need to be proactive.
If you have any questions about appreciation or whatever your questions may be, go to Facebook, type in Grow Your Painting Business, and join the private group. You can ask any questions you'd like. We'd love to hear from you.