Blog | LHPH Capital

HOW DOES DEPRECIATION IMPACT TAXABLE INCOME AND DEPRECIATION PAYMENTS?

Written by Eyo Toe | Jun 8, 2021 11:25:00 AM

Chad Martin, CPA and Fractional CFO, provides valuable insights into a topic every dealer needs to understand—how depreciation impacts taxable income and more. Depreciation is a crucial element of financial planning that directly affects your dealership's tax obligations and overall profitability, yet it’s often overlooked in day-to-day operations.

In this informative discussion, Chad breaks down the various ways depreciation can influence your taxable income, offering clear guidance on how to strategically manage it to benefit your business. He explains the role depreciation plays in lowering your taxable income by allowing you to deduct the reduced value of your assets over time. This can be a powerful tool to manage cash flow and reduce your overall tax liability, ultimately giving your dealership a financial edge.

Chad’s expertise as both a CPA and Fractional CFO gives him a unique perspective on how depreciation fits into the bigger picture of dealership finances. His advice is invaluable for anyone looking to optimize their tax strategy, manage assets effectively, and ensure that their business remains financially strong in a competitive market.

If you’ve ever wondered how depreciation could work to your advantage, this is a must-watch! Tune in to Chad Martin’s insights and learn how to use depreciation as a strategic tool for improving your dealership’s financial performance.

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