TAKE ADVANTAGE OF YOUR 179 TAX DEDUCTIONS DON’T MISS OUT – YOU COULD DEDUCT THE FULL PURCHASE PRICE!
Don’t miss an opportunity to save on your 2016 taxes! The purpose of this section of our website is to give you professional advice within the foodservice industry and we’ve got a great tax tip for you with this edition!
The federal tax Code Section 179 allows you to fully depreciate up to $500,000 on equipment placed in service during 2016 for your restaurant, deli, grocery store or C-store. Further, if you exceed the $500,000 limit on asset purchases, there is a bonus depreciation provision that qualifies most new equipment assets placed in service during 2016 to be depreciated at 50%. Time is of the essence because the assets must be PLACED IN SERVICE during the 2016 calendar year in order to qualify. Both tax provisions allow you an opportunity to upgrade or add to your equipment (some examples listed below or click HERE for a full list) while saving on your federal taxes. Please consult with your professional tax advisor for more details.
Can I lease (or finance) equipment and take the Section 179 Deduction?
Absolutely. In fact, this is a very effective strategy, as the deduction you take may actually exceed the total loan or lease payments you make for the year.