If you have already purchased restaurant equipment in 2009, or are planning on doing so before the year is up, make sure you get your accountant to take a special 50% depreciation allowance for all equipment that is purchased, installed and used by December 31st.
This tax provision was extended by President Obama’s stimulus bill from 2008, and it provides an excellent benefit for restaurants that need to purchase new equipment but are tight on cash in a struggling economy.
If you’ve already taken the leap and purchased new equipment this year, congratulations! You’ll be able to take this 50% write-off on this year’s taxes with no problems. If you’re not sure if now is the time to buy, maybe this is the thing that pushes you into shopping mode.
That’s because this incentive is only good through the end of the year, and the kicker is that the equipment must be installed and in use by the end of the year. You can’t just wait for December 30th and order the equipment you’ve been wanting and still qualify for the credit. So now, with two months left, might very well be the right time to act.