Tuesday, July 10, 2018

Four Words Missing in the New Tax Law Give Restaurants Heartburn

The Wall Street Journal
As intended, a new tax law would have let companies deduct their renovation costs immediately, rather than over many years, providing an incentive to do such work.

Instead, as written, companies must depreciate building-renovation costs over 39 years—a less favorable rule than existed before Congress changed the law.

The problem is the statute lacks the words “any qualified improvement property” in the correct place, which would have made these improvements eligible for the first-year write-offs that apply to equipment purchases and other items.. . . more