The clock is ticking for tax savings. Your wallet’s tight enough as a restaurant owner, so anything that’ll help save you money is welcome. With the year quickly ending, there’s one tax section you want to take advantage of before time runs out: Section 179.
Section 179 allows businesses to deduct the full price of qualifying purchases in a tax year. As part of the American Taxpayer Relief Act passed at the start of the year, deduction limits were increased to 500K in equipment purchases for 2013. Most restaurants would fit in this category and would see drastic cost savings if they take advantage of this tax break. A basic estimate of tax savings is around 35% of the equipment cost. This infographic helps break it down.
Infographic courtesy of Lease Station
As you can see, that means big savings for your restaurant. The catch, however, is that you have to have the equipment purchased and delivered before December 31st to qualify. If you’re on the fence about when to purchase your new equipment, consider taking advantage of Section 179 now so that you can reap the cost savings during the upcoming tax season. If you’re curious how much you’ll save, the government has provided a calculator to give you an estimate.
So, will you save money by purchasing more equipment before the New Year? If so, check out our selection today:
Obviously, our specialty here at Prima is foodservice equipment, not taxes. To determine applicability to your business, we recommend you consult a tax professional.