Taxable Income and Equipment Acquisition I - Fleet managers may know cash flow, but evaluate the after-tax cash situation to understand acquisition strategy

摘要

Equipment managers must understand taxable income, its difference from net earnings, how it is Calculated, and how it is affected by acquisition and disposal decisions. They do not need to know chapter and verse of the tax codes, but they must understand the principles and be able to debate issues when they occur. This article emphasizes language and concepts. It does not replace the expertise of accountants and financial managers. Instead, the objective is to assist equipment managers in communicating with specialists and in understanding how equipment decisions affect taxable income.