Working Asset Tax Rules, Equipment Depreciation, and Employee Benefits Planning

In this episode of the Scholar Wealth Podcast, we work through three business planning questions that touch on how assets, equipment, and employees are treated from a tax and benefits perspective.

We start with a question about the tax treatment of working assets. Stephan walks through how the IRS distinguishes between a legitimate business activity and a hobby, why profit motive and documentation matter, and how depreciation rules apply to working animals used in an active trade or business.

Next, we turn to equipment purchases and depreciation. Stephan explains how specialized business equipment is classified, how Section 179 and bonus depreciation work, and why tax benefits should support business decisions rather than drive them.

Finally, we look at employee benefits planning for a long-tenured workforce. Stephan discusses how retirement plans and health benefits should be designed with longevity and sustainability in mind, and why periodic review is critical as workforce demographics and costs evolve.

And if a few of these questions feel a little seasonal, we’ll just say this episode is arriving at the perfect time of year.

Stay in touch beyond the podcast:

Newsletter: https://scholarfinancialadvising.com/newsletter

Start your planning journey: https://scholarfinancialadvising.com/welcome
Submit a question for the show: https://scholarfinancialadvising.com/podcast

Disclaimer: The information provided in this podcast is for general informational and educational purposes only, and is not intended to constitute financial, investment, or other professional advice. The opinions expressed are those of the hosts and guests and do not necessarily reflect the views of any affiliated organizations. Investing in financial markets involves risk, including the potential loss of principal. Past performance is not indicative of future results. Before making any investment decisions, you should consult with a qualified financial advisor who can assess your individual financial situation, objectives, and risk tolerance. Thanks for listening!