Tax Planning
Equipment decisions have a tax answer and a cash answer
The problem
Capital purchases get timed by whichever is louder — the salesperson's year-end promotion or the cash balance — instead of by after-tax cost.
Why it matters
Accelerated deductions can materially change the after-tax cost of equipment, but only if the purchase, financing and placed-in-service date line up in the right year.
How to know if you have this
- Equipment is purchased in December without modeling
- You cannot state the after-tax cost of your last major purchase
- Financing structure was chosen without tax input
- Assets are placed in service later than expected
How Advisory Motion solves it
- 01Model after-tax cost across purchase, finance and lease structures
- 02Time the placed-in-service date deliberately
- 03Coordinate the purchase with the current-year tax projection and cash forecast
- 04Track the deduction against the plan rather than discovering it at filing
Illustrative example
A two-week difference
Moving a delivery date by two weeks pulled the deduction into a materially higher-income year. Same equipment, same price, meaningfully different after-tax cost.
Illustrative composite · not a client identification
Where this connects