Fleet Advantage President and Chief Financial Officer Brian Holland, is presenting at this year’s Equipment Leasing and Finance Association’s (ELFA) 57th Annual Convention in Phoenix. Holland is addressing the Tax Reform and FASB accounting changes, and how they affect equipment acquisition strategies in the panel session titled: Tax Reform Implications for 2019 and Beyond. The session takes place Tuesday.

Positive trends in the U.S. economy and recent U.S. business tax reforms—in particular, a 21 percent corporate tax rate and immediate expensing for equipment—are expected to trigger greater investments in various types of equipment. In addition, recent changes made to the FASB and IASB accounting standards may impact a company's bottom line and decisions about equipment acquisition.

This session will examine how the Tax Cuts and Jobs Act and new lease accounting standards may affect the lease versus buy decisions, and how certain equipment lease structures may impact overall financial performance. This session will also focus on tax reform implementation, including the status and outlook for regulatory guidance, as well as legislation making technical corrections and more substantive changes to the Tax Cuts and Jobs Act.

“The tax and accounting changes create economic and practical advantages in leasing compared to a loan,” Holland said. “As a result of the tax reform, it is expected that many companies will prefer leasing to borrowing simply as a consequence of the limit on interest deductions; hence an increase in leasing activity.”

In addition, this session will explore political, economic, budgetary and other factors that may influence and shape future tax law changes affecting the industry. This discussion is important for the equipment leasing and finance industry to assist companies in understanding the tax reform and accounting changes implications and to aid them in developing plans to adapt and prepare for the future.