While perusing some months-old issues of Foodservice Equipment Reports magazine, I noticed a small article that I wanted to bring to your attention immediately! If you are looking to buy foodservice equipment in the near future, you might want to look into purchasing sooner rather than later. The article below outlines an amazing opportunity that allows foodservice operations to write off equipment costs immediately, instead of spreading it out over several years, you must purchase before the end of the year to receive the maximum benefits this bill allows! I included a copy of the article found in the magazine's online archives followed by a link to the particulars of the Act on http://www.irs.gov below:
Tax Incentive Makes Sense For Equipment Buyers
April may be tax month, but there are still eight months left this year to secure some important tax perks for purchasing or selling equipment. The Small Business Jobs and Credit Act of 2010, signed by President Obama last September, provides tax relief for foodservice operations and small businesses and assistance in gaining access to capital.
The legislation allows foodservice operations to write off up to $500,000 of equipment costs immediately, rather than recovering the entire cost over a multi-year depreciation schedule. The purchase must be completed during the ’11 tax year.
The bill also extends expensing limits to restaurant structural improvements, new construction and leasehold and retail improvements. As part of the proposed $500,000 limit, operators can expense $250,000 of those costs the year they incur them, through ’11. Previously, operators could recover these costs only through a 39½-year depreciation schedule.
The legislation also includes incentives that make it easier to obtain Small Business Administration-backed loans.
For help in navigating this in-depth process, call C&T Design today!