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Tax Incentives for the Restaurant Industry

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Restaurants operate in a high-cost, fast-moving environment where margins are tight and investments in facilities, equipment, and remodels are constant. From kitchen upgrades and dining room renovations to new locations and equipment replacements, these capital expenditures can create meaningful opportunities for tax savings.

KBKG helps restaurant operators identify and maximize tax incentives related to Repair vs. Capitalization Review, Predominant Use Study, and Cost Segregation / Fixed Assets analysis.

Our experienced team works to uncover overlooked deductions, improve cash flow, and help restaurant businesses fully leverage available tax benefits.

Restaurant Industry Tax Saving Opportunities

Cost Segregation for Buildings & Improvements

Any building acquisition or/and improvements over $1.5M should be reviewed for proper classification of the individual components for tax depreciation.

Repair vs. Capitalization Review §263(a)

Taxpayers often capitalize major building expenditures that could be claimed as current year deductions for repairs and maintenance such as HVAC units, roofs, parking lots and more.

Fixed Asset Review

Evaluating a company's entire fixed asset schedule to identify assets that can be optimized for federal and state tax purposes. Taxpayers utilizing the book method of accounting for tax are not maximizing their available deductions.

Predominant Use Study

These studies determine the percentage of utilities used in qualifying processes, enabling businesses to claim important sales tax exemptions and reduce operating costs.

Restaurant Industry Tax Insights

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