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Section 179 Deductions – What Are They?

Potentially Save $1,000s In Taxes with Section 179 Deductions

2020 has hit all of us hard, especially those of us working in foodservice and small businesses. How can we invest in our businesses in this economy and still be relatively financially stable? Well, we have the rundown on Section 179 deductions, a hidden small business gem buried in the tax code. Believe me, if I can understand it, it’ll be a piece of cake for you.

(If you read our last blog about Section 179, there are essential changes here to note for 2020).

What Are Section 179 Deductions?

Section 179 deductions are a tax incentive specifically for small businesses to invest in themselves. It allows businesses to deduct the ENTIRE amount of qualifying equipment purchases in the current tax year from their gross income, rather than writing off a partial amount each year. These deductions are available as long as equipment is purchased and fully operational before they end of the tax year (12/31).

Qualifying Deductions

Eligible business expenses for deduction are both new and used equipment, software, and/or business vehicles purchased or financed during the current tax year. Again, any equipment purchased must also be fully operational by the end of the day on December 31, 2020. Financing your equipment will also allow you to slowly pay off your equipment purchase while still being able to deduct the full purchase price* (unlike a bank loan).

* Terms & Conditions may vary, dependent on your specific situation

Section 179 Limitations

To truly make this a small business incentive, the IRS designates spending caps on equipment purchases for companies to qualify.

Company Spending Cap: The maximum amount able to be spent on equipment in 2020 is $2,590,000. Once a company reaches this limit, the deduction will be reduced dollar-for-dollar.

Company Deduction Limit: The IRS has increased the deduction limit in 2020 to $1,040,000.

What does this mean? Any company spending more than $3,630,000 on equipment and software will not qualify for a deduction using Section 179.


2020 has been a year of chaos and unforeseen challenges. Financing your equipment can ensure you still have extra cash on hand for anything that might come your way. The amount that you can write off in taxes can exceed profits, which allows you to finance more equipment and reinvest in your business.

Keep in mind that we at Burkett are not tax professionals and you should always consult your own to figure out what’s best for your business!

If you have any questions or are ready to purchase or lease foodservice equipment, contact us! Call, email, or website live chat to talk to a sales specialist today!

What is Section 179 of the IRS Tax Code?

IRS Section 179Most business owners think the IRS’ Section 179 tax deduction is some mysterious or complicated tax code. It really isn’t, we promise.

What Is Section 179?

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. That means that if you buy a piece of qualifying equipment, you can deduct the entire purchase price from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment more easily and invest in themselves quicker.

Section 179 allows businesses who finance their equipment purchases to write off full equipment costs in the year they buy it rather than capitalizing costs over the useful life of the equipment and waiting years to receive deductions.

For 2018, the maximum deduction you may elect to take for a year is $1 million. However, the equipment must be purchased and already in use by Dec. 31 of the tax year.

How It Works

So, let’s say you bought a $10,000 piece of equipment for your business. Under normal depreciation rules, you would only receive a portion of the cost in deductions each year over its useful life. Now, under Section 179, you can deduct the entire $10,000 from net income in the first year you own it. So, assuming a 35% tax bracket, that’s a tax savings of $3,500. That savings lowers the cost of your $10,000 purchase to $6,500!

What to do with the savings

Financing allows you to have cash on hand for emergencies or unforeseen business costs. The amount that you can write off in taxes can exceed profits, which allows you to finance more equipment and reinvest in your business!

If you’ve been thinking about making that major purchase, take advantage and do it today, 2018 is almost over!

Ready to get started? Still have more questions? Follow this link to email, chat, call, or visit one of the superior sales solutions specialists at our Perrysburg, OH headquarters.

What to Buy Before Opening a Restaurant

New Restaurant EquipmentFor restaurant owners just starting out, the search for the right equipment and supplies can be daunting. Figuring out exactly what you need is a difficult task. For any restaurant, there will be a long list of equipment and supplies that need to be procured before even opening, and that list is different for each person and each restaurant.

Determining What Equipment You Need

The equipment you need will largely depend on your menu and your restaurant concept. However, here are a few general guidelines to follow when you first make up the list of equipment you want to purchase:

Limit yourself. When deciding how much equipment you need, the key is to limit your equipment. Evaluate your menu to determine the fewest pieces of equipment that are needed to produce all of the dishes. For example, if you own a sandwich shop, your absolutely essential equipment needs might be limited to a commercial refrigeratorsrefrigerated prep tablesice machines and meat slicers.

Add strategic extras. The list of essential equipment should be your basis for purchasing. However, if you have extra room in the kitchen and enough extra capital, you can purchase extra pieces: for example, a commercial food processor or cheesemelter. While this equipment may not be a necessity, it can reduce the kitchen labor required to produce your menu, enhance the final taste or appearance of the food or make your kitchen more flexible in case you need to change your menu in the future.

Does slightly imperfect sound perfect to you? 
Shop Burkett’s Scratch and Dent Clearance section today!

Determining What Supplies You Need

Most commercial kitchens need basic kitchen utensils on hand, such as scoops, spoons and spatulas. Often, fledgling restaurant owners overlook purchasing these necessities until the last minute, so before opening, be sure to consider even the smallest things you will need.

Speed up your kitchen. Purchase handy food prep supplies, like vegetable cutters and slicers for high volume produce. Commercial kitchen tools like these can help increase your workers’ productivity.

Stock up for storage. The last thing you want to do is overlook your storage requirements. Every restaurant will need food storage and shelving to hold its supplies. Many full-service restaurants will also require food service carts to help move supplies from one area of the kitchen to another.

Do not overlook the tabletop. Every restaurant will need smallwares. Quick-service establishments will need disposable restaurant supplies, while full-service restaurants will need reusable dinnerware and drinkware. Most restaurants will also need other supplies for their tabletop, like condiment containerstabletop signs and food baskets.

Remember food safety supplies. Gloves, pot holdershairnets and thermometers are easy to overlook, but they include essential items that any commercial kitchen needs to meet strict health codes and keep workers and customers safe.

Finding the Right Equipment and Supplies

Every restaurant is different and therefore has different equipment requirements. Using a buying guide or speaking directly with an expert will empower you to make the best possible decisions when purchasing equipment.

Think about going green. Purchasing eco-friendly restaurant equipment and supplies is a good way to help the environment and attract customers at the same time. It will also help you save a significant amount of money on your utility bills.

Consider used or discounted equipment. On a tight budget? You may want to look into buying used equipment or equipment that is cosmetically damaged. Although there is some risk involved, for some restaurant operations, this is a viable option. Check out this blog post on the pros and cons of used restaurant equipment.

Finding a Good Dealer

You can often get a better deal if you choose one restaurant supply dealer and stick with it. Since you order all of your supplies from one business, you are likely to receive a discount. To find a dealer that is right for you, you must first consider your priorities. Usually, your priorities will include one or more of the following:

  • Price. While a local dealer may offer excellent pricing, usually the least expensive products can be found online. However, the cheapest online dealers usually offer low prices but lack the customer care services and expertise that can be found with higher-priced online or brick-and-mortar dealers.
  • Expertise. Speak directly with salespeople to determine their level of expertise. If the salespeople seem to be experts at making a sales pitch, rather than having knowledge about the actual products they are selling, it may be time to find another dealer.
  • Customer Service. When buying expensive equipment, any restaurant owner should make sure that their dealer offers superior customer service. Without good customer care, if you receive damaged equipment or your equipment does not live up to your expectations for any reason, you may be stuck with it.
  • Installation. One of the major advantages of buying from a local restaurant equipment dealer is that they will often provide you with equipment installation, for a fee. If you buy your equipment online or at an auction, you are less likely to find installation included in the package. However, some online dealers, such as, will help you find someone to install the equipment.

When looking for a good dealer, it is also important to look into the following:

  • Shipping costs
  • Return policies
  • Parts availability

Finding the right equipment and supplies at a good price from a reasonable dealer is a major aspect of opening a restaurant. If you do not have the right supplies from the right dealer, it will end up hurting your bottom line in the long run. Be sure to carefully consider your equipment and supply needs, as well as your choice of dealer, before you begin to purchase.

Top Apps Every Restaurateur Should Have

There are apps for just about everything these days, from fertility to free text messaging to crazy games like Angry Birds. If you look hard enough you’ll also find some pretty cool apps to make your life as a restaurateur easier. Here are just a few. Post your favorite apps in the comment section below.

Yelp… Monitor what people are saying about your restaurant. Do they love the Greek Salad? Think your waitstaff is rude? Find you overpriced? Yelp is a great way to gauge the public’s perception of your establishment. You can also comment on their reviews- just don’t be a jerk if you get negative feedback.



Pinterest… Show your customers just how amazing your food looks. Upload pins of your plates to create Boards like,”Italian Night” and “The New Fall Menu.” Your followers can also comment on the pictures and repin your pins on their own boards to spread your goodies to their followers. It’s really a fun and highly-addictive app to have.



SteakTimer… There is nothing worse for a customer than having an over or undercooked steak presented to them. Download this app for your chefs to ensure that the steak they are serving up is served up perfectly. We like the app from Kansas City Steaks because it also has really good steak recipes, is interactive, and includes a reference library. It’s like your one-stop steak center.



PayWithSquare… Turn your iPad into a register with a simple Card Reader. You can organize your POS  by adding names, photos, and prices to make it easy for your waitstaff to check people out. All you have to do is then swipe the customers card with the Square Card Reader. This app also allows you to reward existing customers with a simplified rewards program. Insightful analytics will help you make smart decisions to identify busy or slow days and times that can be exported to spreadsheets.

ShelfLife… Keep track of your inventory by setting up food expiration reminders. With this app, you can keep track of your inventory while tracking each item’s age. There is also a global database to help you seamlessly search for foods as well as their expected life span. The handy Green (New) to Red (expired) color scale will let you instantly know the edibility status of the items. So let’s say you just had a shipment of  Fresh Spinach arrive. All you have to do is input the name and quantity and ShelfLife will automatically tell you the shelf life of the item- in this case, 11 days.


ChefSheet… No more overspending on the ingredients you need. Say good-bye to unorganized inventory check-lists. ChefSheet is a FREE restaurant inventory app that lets you shop for the best products at the best prices and even anonymously compare what you’re paying for products to other anonymous restaurateurs in your area. Inventory can be organized based on the items location, ie., Walk-In Cooler, Bar Area and Prep Room.



InMyBar… Don’t let your bartender get stumped by a customer. With the InMyBar app, your employees will have hundreds of different drink recipes at their fingertips. The app can also tell you what kind of drinks you can make with the brands and ingredients that you have and what ingredients are needed to make a customers favorite drink. You can add the ingredients you need to a Shopping List and no Internet connection is needed.



WhenIWork… No more sitting around and writing out a long schedule sheet that your employees have to copy. WhenIWork is  a better way for busy restaurateurs like you to handle employee scheduling and keep everyone connected.  You can create, edit, cancel and view shifts, have employees make time off requests, monitor employee time-off requests, share and have access to employee contact information, and send email or SMS text messaging to your staff.



Facebook Page Manager… No Top App list is complete without a Facebook mention. Every restaurant should have a Facebook Page to share what is happening with your customers. To make it easier on Page Managers, Facebook came out with this app to streamline the process for you. Set up notifications and you’ll receive a pop-up notification every time someone posts on your wall or comments on your restaurant’s post.



Did we miss your favorite app? Share it with the world by posting it in the comment section below.

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