Foodservice Equipment Reports

Fiscal Cliff Deal Includes Equipment Tax Breaks, Extension Of Tax Depreciation

A fall off the so-called fiscal cliff was skirted by Congress's New Year’s passage of the American Taxpayer Relief Act, which included a number of tax breaks for small-business owners and foodservice operators. The legislation contains a long list of temporary tax provisions that will be extended for a year, including a provision allowing businesses to write off immediately half the value of new investments—including equipment—known as 50% bonus depreciation.

It also includes a one-year extension of the 15-year tax depreciation schedule for restaurant structural improvements, new construction and leasehold and retail improvements.

In the past, an individual leasing a building and spending heavily on renovations to create a restaurant would be able to deduct those costs over the next 39 years. A provision allowing restaurants to reclaim the costs over 15 years, and providing them larger deductions, expired in 2011, but now will become retroactive for ’12 and extend through ’13. 

Related Articles

Fiscal Cliff Deal Extends 15-Year Tax Depreciation For Operators

Time To Invest In Equipment: Congress Gives Ops, Small Businesses A Permanent Tax Break

Consumers Buying, But Worry Sets In About Fiscal Cliff