Small business restaurants will be looking for a bright future this year. The National Restaurant Association is calling it “…a good time to look at your capital improvement plan.” Now that President Obama has signed the Small Business Jobs & Credit Act of 2010, Section 179 of this law gives a tax break to small businesses. Restaurants and manufacturers can now write off investments in new capital expenditures for up to $500,000. This section gives restaurants an additional incentive to buy restaurant equipment within the next 14 months.
So long as the purchase is made within the 2010 or 2011 tax year, this eradicates the burden of having to depreciate the expense over time. Prior to this act going into effect, small business owners could only write off equipment purchases under Section 179. Now up to $250,000 of the $500,000 limit can be deducted for refurbishing, new construction, and retail improvements.
This act will also allow businesses to claim a depreciation bonus, which in essence means they can immediately deduct the remaining cost of new equipment, such as point-of-sales systems, kitchen equipment or furniture through 2011.
The National Restaurant Association is encouraging restaurants to look at their budget and see if it would be better to purchase a large sum of equipment now in order to take advantage of this tax break at the end of the 2011 tax year.
For the restaurateur of 2011, J.E.S. Restaurant Equipment has everything you need in commercial restaurant equipment to get the ball rolling on your restaurant. We encourage every small restaurant owners to take advantage of this tax break in the coming fiscal year.
