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Improvements to Qualified Real Estate Property Can Be Written off in ONE YEAR!

building-clip 150x150Usually the “Section 179” tax code provision is thought of with assets such as computers and equipment.  But for the last few years, it also applies to certain types of real property leasehold improvements.   The two primary areas are retail property or restaurant property.

  • So there was an old Mexican restaurant in my town that was around for ever.  It had the bright red plastic booth seating that was worn out; felt on the pool table that was smooth.  It was remodeled into a “hip” open area bar and restaurant.  It is jammed with people every night of the week.  All of the improvements put into this are eligible to be written off in a year.  What a great deal.
  • The same goes for other retail shops.  Every few years you want to do a “facelift”.  Through the end of 2013, all of the improvements can be written off.

Another interesting feature of the “Section 179” is that if the business does not have enough income  to use it all in the current year, then it can be rolled forward to the next year.

This is just a brief summary of an opportunity that expires at the end of 2013.  If you want more information, contact Bruce for an appointment to discuss.