Save on Taxes with IRS Section 179
Section 179 of the IRS tax code lets qualifying businesses deduct the full purchase price of eligible equipment bought or financed during the tax year. Instead of writing off the cost a little at a time over several years, you can deduct it all in the year the equipment goes into service. That makes financing even more attractive: you make affordable payments while potentially writing off the full cost now.
Most new and used commercial kitchen equipment can qualify, including ovens, ranges, refrigeration, ice machines, dishwashers, and prep equipment. To qualify, the equipment must be purchased or financed and put into service by December 31 of the tax year.
Section 179 Savings Example
Equipment purchase - $50,000
Section 179 deduction - $50,000
Tax savings (at an assumed 21% tax rate) - $10,500
Net cost of equipment after tax savings - $39,500
Example is for illustration only. Your actual savings depend on your tax rate, business income, and how the equipment is financed.
Learn more about Section 179 ↗
Deduction limits and eligibility rules change each year. Gator Chef does not provide tax advice. Please consult your tax professional.
Note: Section 179 eligibility depends on the financing type and applicable tax regulations
