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The Big Beautiful Bill – RTO Tax Strategies for a Stronger Bottom Line

The Big Beautiful Bill – RTO Tax Strategies for a Stronger Bottom Line

When Pete Shau from The RTO Show Podcast sat down with APRO members Michael Helton and Alicia Holloway from Rivero, Gordimer & Company P.A., the conversation turned into a deep dive on how today’s tax laws shape the future of rent-to-own (RTO) businesses. From bonus depreciation to business valuation, the two CPAs broke down what the recently signed “Big Beautiful Bill” means for store owners navigating cash-intensive operations.

Understanding the “Big Beautiful Bill” and RTO Tax Strategies

The new tax act reinstates 100 percent bonus depreciation for qualifying assets – a major win for small and mid-sized RTO companies that fund inventory with operating cash. Helton explained how this allows dealers to “buy and expense as you pay,” helping improve near-term liquidity. But he cautioned against over-leveraging: businesses purchasing inventory with debt must still plan for eventual tax recapture when those assets turn.

Holloway highlighted another update: expanded limits on deductible interest expense. By shifting the definition of taxable income back to EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), more RTO businesses can deduct higher levels of interest – a significant advantage for operators using financing to expand. The bill also introduces an overtime-pay exclusion of $12,500, easing the tax burden for employees who work long hours keeping stores running.

Planning Ahead for Sustainable Growth

Beyond the numbers, Helton and Holloway emphasized strategy over reaction. Now is the time, they said, for RTO dealers to run year-end projections, reconcile their balance sheets daily, and consider whether to opt out of bonus depreciation to maintain consistent planning. “Being an owner doesn’t mean you work less,” Helton noted. “It means you spend more time understanding your numbers.”

Their advice underscores a core truth: the most successful rent-to-own businesses balance customer relationships with disciplined financial management. The right CPA partnership – and smart application of these RTO tax strategies – can help operators protect margins, plan for growth, and prepare for whatever legislative changes come next.

Listen to the full episode of The RTO Show Podcast, proudly sponsored by APRO, on Spotify or watch it on YouTube.

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Mike Lewis

Central Properties dba Premier Rental-Purchase

Mike Lewis is a Premier Rental Purchase franchisee with multiple stores and currently serves as Vice President of Operations. With 33 years of experience in the rent-to-own industry, he has spent the past 20 years working closely with franchisee owners and previously spent 12 years in Corporate RTO, gaining a strong foundation in the business.

For the past five years, Mike has been sharing his knowledge by teaching managers and franchisees at the company’s Training Center.

Outside of work, he enjoys time with his family, kids, and grandkids, and appreciates the simple things in life – especially riding his Harley Davidson with the sun on his face. If you know, you know!

Lauren Talicska

Arona Corporation dba Arona Home Essentials

Lauren Talicska is an experienced multi-channel marketing specialist and the Vice President of Marketing & Communications at Arona Home Essentials. She has found her home in the RTO community, supporting stores in branding, growth, and increasing traffic.

You may recognize Lauren as a former RTO vendor, including her time as a partner for Nationwide RentDirect, or her previous participation in the APRO Vendor Advisory Committee. Lauren calls Columbus, Ohio, home and spends her workday crafting and executing marketing promotions from inception to realization, all while supporting the branding and social media needs of all the Arona stores in 12 states (plus Puerto Rico!).

Charles Smitherman

APRO

Charles Smitherman, JD, PhD, CAE, became CEO of APRO in 2023, bringing years of legal and executive experience in the rent-to-own industry. 

Prior to joining the association, Charles served as COO, General Counsel, and Vice President of PTS Financial Services, where he played an active role in the rent-to-own industry by representing his company through PTS’s club program offering with APRO member dealers. Charles is an attorney with two decades of experience across a wide variety of areas, including RTO, consumer financial services, antitrust, corporate law, mergers and acquisitions, litigation, franchise law, and privacy law. Following law school at the University of Georgia, Charles earned a Master of Legal Studies and PhD in Law from the University of Oxford in England.

Charles is credentialed as a Certified Association Executive (CAE) with the American Society of Association Executives, a Certified Franchise Executive (CFE) with the International Franchise Association, and a Certified Information Privacy Professional (CIPP/US) and Certified Information Privacy Manager (CIPM) through the International Association of Privacy Professionals. As APRO’s sixth CEO in its 45-year history, he brings a collaborative, member-focused approach to association leadership, emphasizing transparency, advocacy, and value creation. Outside of work, Charles is an active ultra runner and open water swimmer.

Mike Kays

Ashley Furniture Industries

As VP of Rental Sales for Ashley Furniture Industries, Mike thrives on building relationships with our RTO industry veterans, and helping businesses grow through new product, new marketing, and new supply chain options.

Mike works to leverage a wide breadth of relationships and influence, intimate knowledge of market trends, and unique knowledge of what RTO dealers need from a supplier to be successful.

The saying goes that a high tide raises all boats, and our goal is to leverage the world’s largest furniture manufacturer to drive the continued growth of the RTO industry and all the suppliers.

Mike Tissot

Countryside Rentals Inc., dba Rent-2-Own

Mike grew up in the rent-to-own industry under the guidance of his father, former APRO President and RTO legend Darrell Tissot. For nearly 25 years, Mike’s innovative leadership has helped expand the family business to more than 40 stores across Ohio and Kentucky while also shaping the industry as a whole.

He has served as President of the Ohio Rental Dealers Association, an APRO board member and Treasurer, and President and Treasurer of the TRIB Group. His contributions have earned him the APRO President’s Award of Excellence and the title of APRO Rental Dealer of the Year.

Outside of RTO, Mike enjoys time at the lake house or in Orange Beach, Alabama, with his girlfriend, Angela Strong McCool. A passionate Cincinnati Reds fan, he rarely misses a game, whether watching or listening alongside his parents. He also takes every opportunity to visit Arizona, where his daughter is currently attending Arizona State University.