Depending on where you are in your renovation/remodel cycle, now might be the time to remodel. Senators Bob Casey (D-Pa.) and John Cornyn (R-Texas) have introduced a bill to make permanent a 15-year tax depreciation schedule for restaurant improvements and new construction, leasehold improvements and retail improvements. The bill would allow restaurateurs, landlords and other owners of commercial property to continue to write off property improvements and the cost of new restaurant construction over 15 years.
“By lowering overhead costs, this depreciation benefit may also help minimize the impact of rising labor and food costs that seem to be affecting restaurants more and more,” said Robert Winsor, Professor of Marketing at Loyola Marymount University in Los Angeles.
Without congressional action, the current 15-year depreciation schedule will expire and revert to a 39-year schedule at the end of the year.
Learn about how one Dunkin Donuts Franchisee planned and coordinated a remodel to reduce downtime, meet contractual obligations and be cost effective: My Perspective: Remodels