Taxes are oftentimes one of the last things we want to talk about. However, understanding various tax benefits and deductions is crucial for business owners in the laundry industry. Today we want to shed some light on one important tax benefit in particular — Bonus Depreciation, also known as the First Year Depreciation Deduction. Don't miss our recorded webinar all about How the Bonus Depreciation Tax Benefit Can Save Your Laundry Business Thousands!
What is Bonus Depreciation?
Bonus Depreciation was designed to stimulate the economy and encourage laundromats and other small businesses to spend money — and it’s really a win-win. It is a special tax incentive that allows laundromats to deduct the price of eligible assets, such as commercial laundry equipment, right away in the first year rather than spread it out over the "useful life" of the equipment (straight-line depreciation).
For example, if you buy $10,000 worth of commercial laundry equipment, you can now deduct all of that this year, rather than spreading that depreciation out over the 5-7 year life of the machine. Bonus Depreciation allows you to accelerate and take all of that in year one to get more of a tax break.
Where To Learn More About Bonus Depreciation
The above is just a basis of what Bonus Depreciation is and how it can benefit laundromats like yours. Of course, it’s only the beginning. We definitely encourage you to learn more about Bonus Depreciation and take advantage of it as you’re doing short and long-term capital planning for your coin-laundry business.
Here are a few great resources to help get you up to speed…
Talk to your tax professional. They’re your best resource when it comes to any tax and financial-related question. Accountants oftentimes have hundreds of clients they’re working with, so it pays to be proactive and ask questions sooner rather than later.
Catch a recording of our webinar. Coin-O-Matic hosted a webinar focused on Bonus Depreciation for laundromat owners on October 29, 2020. We talked all about what this tax benefit is and why it’s important for laundry professionals.
In addition to our webinar, Coin-O-Matic is offering a once-in-a-lifetime financing offer — including deferred payments for 90 days and 0% interest for two years!
It’s a great opportunity for laundromat owners who want to upgrade their commercial laundry equipment while taking advantage of great rates and a tax deduction. You’re not paying any interest, you’re paying over time, and you’re getting a tax break — it’s really a win-win situation!
Contact us to learn more about this special, limited-time financing offer!