Use Tax Relief to Upgrade Your Restaurant

Looking to pay lower taxes this year or maybe even get a refund from taxes you paid last year?   Need some new equipment for your restaurant’s kitchen?  If you take advantage of The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 you could do just that!

This Bonus Depreciation program allows businesses to take the full deduction of qualifying assets purchased between now and December 31, 2011 on their 2011 tax return (instead of depreciating the value over the typical seven years), advises NBF.com.   Equipment placed in service after December 31, 2011 and through December 31, 2012 or purchases made between January 1, 2010 and September 8, 2010 still allows for a 50 percent depreciation bonus.  The CCH Group also instructs that, “Unlike Code Sec. 179 expensing, it (Bonus Depreciation) is not limited to use by smaller businesses or capped at a certain dollar level.”

According to WhiteHouse.gov, this depreciation break is, “The largest temporary investment incentive in American history” and “could generate more than $50 billion in additional investment in the U.S. in 2011.”  While this offers a wonderful opportunity for your business to become modernized, it also frees dollars up that could be used to create jobs and boost the economy overall.  Joni Fritsche, tax director with Burr Pilger Mayer in Santa Rosa, California told the North Bay Business Journal that,  “What Congress is doing in this area is economic planning and economic stimulus for a period of years on a moving forward basis.”  Essentially, while at the more local level the government is providing a boost for your business, on a higher level they are putting assets back into use to enhance the country’s economy in the long term.

What does all of this mean for your business?  It’s time to bring that kitchen into 2011!  In actuality, it’s an opportunity for you to buy that new fridge you’ve needed for months and use the cash back to do things like finance an expansion or pay off the purchase itself.   However, there are a few stipulations other than purchase dates.   The first, informs depreciationbonus.org,  is that any equipment acquired must be new.  The property must also be specifically used for production in your business and considered to have a useful life of a year or more.  Unfortunately, reminds hotelmule.com, this means items like linens, plates and glasses do not qualify for the program.

Take advantage of this opportunity now, by viewing qualifying products from Central Restaurant Products.  Get great deals on ovens, refrigerators, furniture and more while reaping the benefits of Bonus Depreciation!

The information above is not tax advice and situations can vary.  Central Restaurant Products encourages you to consult your tax attorney for details before making any purchases.  To learn more about the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 here.

4 thoughts on “Use Tax Relief to Upgrade Your Restaurant

  1. Tina

    This is a good initiative from the US government to improve the quality of food service and ensure the health safety of its citizen. A good initiative to be adapted by governments with plenty of fund.

  2. Amber

    You make a great point about the health safety Tina. I never even considered that. I guess I was looking at it in more of a convenience/aesthetic view. Do you think many places will take advantage of the opportunity? Have you noticed any upgrades recently?

  3. Amber

    That’s great to hear! It’s encouraging to know that the tax breaks are pushing people to upgrade to better (hopefully more efficient) products.

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