If you own a small business, Section 179 deduction is one of the most important tax codes you need to be familiar with in 2023. It lets you deduct all or part of the cost of equipment that is purchased or financed and put into place before December 31, 2023.
There is still time to take advantage of Section 179 of the IRS tax code by purchasing restaurant equipment – exhaust hood systems, walk-in refrigeration, conveyor dishwashers, heavy-duty slicers, dough mixers, convection ovens, high-efficiency gas fryers, etc. If you are planning to move your foodservice operation into a higher tax bracket for 2024, now is the opportunity to purchase all restaurant equipment before the end of the tax year for a huge break.
Now business owners do not have to wait to buy all the equipment they need. For most small businesses, the entire cost of equipment can be written off on the 2023 tax return, if it is eligible. All eligible items include new and used equipment purchased for business use.
In 2023, restaurants, food trucks, catering operations and others (schools, hospitals, convenience stores, etc.) can take a first-year deduction of up to $1,160,000 million worth of equipment purchases. Click here to view the tax deduction calculator.
How do I get the deduction?
Section 179 is a tax deduction for businesses that have placed new or used equipment into service within the year that they purchased or financed. This deduction is not automatic and must be elected. To elect to take the deduction, you’ll need to fill out Part 1 of IRS form 4562.
Call our sales team to receive a personalized build-out or renovation quote at 404-752-6715. For all information on Section 179 deductions, please visit section179.org.