I gotta buy a new WHAT??
So how’s that walk-in freezer treating you? Or rather, your food. Are the frozen peas mushy? Is it confusing 18° Celsius with 18° Fahrenheit? More cheap-o-personal-fan-like than freezer-like? So the sucky part is you’ve got to pony up for a new freezer. The good part is that the American Recovery and Reinvestment Act has a provision that’s right up your tax-saving ally.
So here’s the deal: Pretty much any piece of equipment you buy for your shaved ice kiosk (it is, after all, summer) can be fully expensed for income tax purposes. Even if you cough up $250,000 to buy the 8 gazillion BTU stove for the back of the house, you’re covered. You can offset this cost against the net income for your restaurant to the extent your business has earnings.
If you happen to be opening a restaurant in 2009 and are worried that you’ll report a net loss even without the equipment expense, not to worry. You can still make the election to expense your equipment, and carry the unused amount forward to offset all that gnarly net income you’ll be showing in 2010 and beyond, just as soon as your Cheez Whiz ‘n Spam casserole concept catches on nationwide.
As always, please consult with a competent tax advisor to make sure it works for you. Hey, wait a minute. I’m one of those guys. Well then, consult with me if you’d like. Until then, however, pass the ketchup (catsup??). I got me a hankerin’ for some o’ that thar Cheez-am-erole. Good eatins’. And more tax savings ideas next blog.
Tags: American Recovery and Reinvestment Act, Cheez whiz, ketchup, restaurant accounting, Shaved ice, spam