Section 179 Deduction & Qualified Leasing

The Section 179 deduction for 2023 is $1,160,000 dollars. This means U.S. companies can deduct the full price of qualified equipment purchases, up to $1,160,000, with a “total equipment purchase” limit of $2,890,000. In addition, businesses can take advantage of 100% bonus depreciation on both new and used equipment for the entirety of 2023. For most small businesses, the entire cost of qualifying equipment can be written off on the 2023 tax return (up to $1,160,000).

Limits of Section 179

Section 179 does come with limits – there are caps to the total amount written off ($1,160,000 for 2023), and limits to the total amount of the equipment purchased ($2,890,000). The deduction begins to phase out on a dollar-for-dollar basis after $2,890,000 is spent by a given business (thus, the entire deduction goes away once $$4,050,000 in purchases is reached), so this makes it a true small and medium-sized business deduction.

*For demonstrative purposes only. Example from Crest Capital

Section 179 Qualified Financing and Leasing encourages the use of Section 179 Qualified Financing for all business equipment purchases. The advantage to leasing or financing equipment and then taking the Section 179 Deduction is the fact that you can deduct the full amount of the equipment, without paying the full amount this year. The amount you save in taxes may exceed the payments, making this a very bottom-line friendly deduction. 

Restaurant Revitalization Fund – Open Now 

The American Rescue Plan Act established the Restaurant Revitalization Fund (RRF) to provide funding to help restaurants and other eligible businesses keep their doors open. This program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023. 

Who Can Apply? 

Eligible entities who have experienced pandemic-related revenue loss include: 

  • Restaurants 
  • Food stands, food trucks, food carts 
  • Caterers 
  • Bars, saloons, lounges, taverns 
  • Snack and nonalcoholic beverage bars 
  • Bakeries (onsite sales to the public comprise at least 33% of gross receipts) 
  • Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts)

& more – check their website for more info!