How to Buy a POS System at a 35% Discount (Thanks, Uncle Sam!)
It's the end of the year, and there's no better time to invest in new tools and technology for your restaurant! And thanks to the Small Business Jobs & Credit Act of 2010, which renewed the Section 179 deduction for equipment purchases, you can take advantage of tax savings that will help you get a point-of-sale system for your restaurant - for less!
How It Works:
The Section 179 provision allows you to deduct the full cost of equipment purchases, up to $500,000 this year. Let's look at an example of how this saves you money! Joe's Pizza, a growing shop, is expecting to finish the year with a taxable profit (on paper) of $35,000. If Joe does nothing, he'll probably have to pay a good portion of that to Uncle Sam to cover income tax, maybe even as self-employment tax. Let's estimate this to be around 35%, or $12,250.
But if Joe purchases equipment, like that point-of-sale system he's been thinking about adding to his business, he can reduce the taxable profit, even if he finances the equipment purchase. So, after consulting his accountant, Joe decides to spend $12,000 on new technology. His real cost, considering the tax savings, is just $7,800. Now that's a deal! And the check he's got to write to Uncle Sam next April will be a whole lot smaller.
Good to Know:
Check with your accountant for details on how the Section 179 provision applies to your business. Usually, you must purchase and receive the equipment prior to December 31, so act quickly to determine which POS system is right for you! Granbury Restaurant Solut
ion has several to choose from - and with our 3-2-1 End-of-Year Special, you can boost your business with online ordering, smart phone ordering, and automatic marketing - FREE! Click here to learn more.