Note: These tax breaks may no longer be available.
If you are looking at upgrading your walk-in cooler or freezer or thinking of acquiring a new one, now is the time to act. The potential tax savings may help persuade your purchase decision. Usually you have to depreciate the cost of these items out over several years. Now, a qualifying taxpayer can choose to treat the cost as an expense and deduct it in the year the property is placed in use.
Under The Small Business Jobs Act of 2010, qualifying businesses can now expense up to $500,000 of section 179 properties for tax years 2010 and 2011. Without the Small Business Act, the expensing limit for section 179 properties would have been $250,000 for 2010 and $25,000 for 2011. The definition of qualified section 179 properties includes qualified restaurant property for tax years beginning in 2010 and extending to 2011.
Now is the time to take advantage of these tax breaks on new equipment, including walk-in coolers and freezers. By taking advantage of this tax break, you can save thousands of dollars in taxes.
Consult your tax adviser for details and how to take advantage of tax benefits when purchasing new equipment.