Year-End Tax Planning for Manufacturers: Keep More Cash
Year-end tax planning for manufacturers isn't just about shrinking this year's bill. Buy equipment for the wrong reason and you can trade a small tax win for a cash crunch next year. On this episode of Moore on Manufacturing, Mike Sibley, CPA and Kevin Golden, CPA, partners on James Moore's manufacturing team, walk through the Q4 tax moves still on the table and how to weigh each against your growth plans. In this episode: ✅ When a full equipment write-off pays off, and when spreading it out avoids a rate spike ✅ How qualified production property and cost segregation speed up depreciation on facilities ✅ Which process and engineering work may qualify for the R&D credit, plus new IRS documentation rules ✅ Why writing off obsolete inventory and dead receivables cuts taxes and frees up space ✅ How hiring credits and out-of-state remote hires change your tax picture ✅ How to plan for an April tax bill while you're still growing Some of these moves have to happen by December 31. Others, like R&D, reward the tracking you start now. New episodes drop the first Tuesday of every month, so follow the show so you don't miss December's. Chapters: 00:00 Year-end tax planning for manufacturers 02:29 Why tax savings shouldn't drive the decision 03:29 Should you buy equipment before year end? 04:25 Full depreciation vs. smoothing your tax rate 06:07 Equipment ROI, financing, and multi-state rules 08:49 Qualified production property (QPP) 11:00 Cost segregation studies for new facilities 12:54 What qualifies for the R&D tax credit 14:26 Estimating the R&D credit on wages and supplies 17:37 New R&D credit documentation rules 20:47 Writing off obsolete inventory 25:22 Small taxpayer inventory options 27:44 Bad debt write-offs and customer deposits 29:34 Energy credits and local hiring incentives 31:19 Work Opportunity Tax Credit 32:16 Retirement plan planning for growing companies 33:36 Tax planning as a year-round conversation 38:27 Planning cash flow for an April tax bill 39:24 Final advice from Mike and Kevin Learn more at James Moore: Manufacturing services: https://www.jmco.com/industries/manufacturing Manufacturing Resource Center (guides and articles): https://www.jmco.com/manufacturing-resource-center Watch on YouTube: https://www.youtube.com/@MooreOnManufacturing Connect with the hosts: Mike Sibley on LinkedIn: https://www.linkedin.com/in/mikesibleydaytonabeachcpa Kevin Golden on LinkedIn: [KEVIN'S LINKEDIN URL, NEEDS CONFIRMATION]







