Specialized Tax Incentives for Restaurants

Specialized Tax Incentives for Restaurants https://wahospitality.org/wp-content/uploads/2015/07/bigstock-Food-Business-24276203-900x198.jpg

You are a small business owner who owns and operates a restaurant. Your time is consumed with ensuring tables are turned and your business is moving forward.  You do not have time to research specialized tax incentives, let alone determine if you qualify.  A mistake many make is thinking that their CPA is already helping them take advantage of these incentives. Cost recovery firms work with your accountant or CPA and provide the documents needed to be compliant.

Below is a brief summary of tax incentives you may be missing out on:

  • Commercial Building Tax Deduction: This is a specialized field and should be done through an engineering firm, not just your CPA.
  • Tax deduction for expenses incurred for energy efficient building expenditures
  • Engineering-based Property Cost Allocation: Recover costs through depreciation of tangible property used in the operation of a restaurant business. Qualified items include: beverage equipment, storage area, furnishings, bar area, flooring, lighting, wiring, sound system, and kitchen area.
  • Employee Tax Credits: Local, state, and federal incentives to hire and retain employees. Available credits up to $9,000 per qualified new hire. Credits are available for employees in the following categories: those living in empowerment zones, young adults, wounded or disabled veterans, food stamp recipients, and those receiving supplemental security income.
  • Commercial Property Tax Reduction: Reduction available on both personal and real property taxes paid.
  • Section 179: Can take an increase in deduction up to $35,000 of the cost of eligible equipment purchases.

The above is a brief list of some incentives you could benefit from as a restaurant owner.  The easiest way to determine your qualification is to ask an expert.

To determine if your facility could capture a benefit, visit WRA partner Strategic Business Coalition at www.sbcprovider.com and or contact Alan Haugen (800.281.5890, sbcprovider@hotmail.com) and ask for a basic calculation, performed at no charge.

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