What Permanent Bonus Depreciation Means for Your Business
If you’ve been keeping an eye on tax policy updates, there’s a development out of the Senate worth paying attention to—especially if you’re considering a major business purchase this year.
Back to Blogs
Bonus depreciation is on track to become permanent
This means that businesses can fully expense qualifying equipment, vehicles, and other assets in the year they’re placed in service, without worrying about a sunset clause or phase-out schedule.
For business owners, this creates a rare opportunity to plan large capital investments with confidence and clarity.
What Does This Mean in Practice? Let’s Look at a Real-World Example
Say your company is considering purchasing an $80,000 vehicle for business use.
Scenario 1: Purchase in Cash
- The full $80,000 qualifies for bonus depreciation
- At a 37% tax rate, that’s a $29,600 tax savings in year one
- However, your business is out $80,000 in upfront cash—potentially straining working capital
Scenario 2: Finance the Vehicle Over Time
- The same $29,600 deduction still applies in year one
- Monthly loan payments allow you to conserve cash
- Preserved capital can be deployed for growth, payroll, or new contracts
The bottom line: Both options deliver the same tax savings, but only one keeps your liquidity intact.
How We Help Our Clients Make the Smart Call
At Toran Accounting, our outsourced CFO team helps companies like yours decide when and how to make capital investments that support both growth and financial stability.
Our services include:
- Real-time cash flow modeling before any large purchase
- Scenario planning to compare financing vs. cash options
- Forecasting tools that anticipate the long-term impact of each move
- Integrated tax and compliance guidance to ensure full IRS alignment
For construction and home services businesses, the margin for error on financial decisions can be narrow. We help widen that margin—by bringing clarity, structure, and proactive planning to every move.
Why This Moment Matters
The permanence of bonus depreciation removes the artificial urgency we used to see each December. You no longer have to make rushed buying decisions to capture tax benefits. Instead, you can align purchases with your operational and cash flow strategy.
Our clients don’t just react to tax law changes. They use them—deliberately and strategically.
Thinking About a Vehicle, Equipment, or Tech Investment?
Let’s walk through the numbers together before you move forward. We’ll help you:
- Confirm eligibility for bonus depreciation
- Analyze the impact of cash vs. financing
- Ensure your books and strategy are aligned with the latest tax laws
Schedule a no-cost strategy call with our team and learn how your next purchase can support both your tax position and your bottom line.
Book a call here: Meeting