Tax Reform Allows Immediate Deduction for Gun Range Ventilation Systems
The Tax Cuts and Jobs Act signed into law late last year includes key changes to how business equipment is depreciated. Now for the first time, new HVAC systems – including Range Ventilation Systems – are included in Section 179. This means they can be fully written off in the tax year they are paid for instead of being depreciated over 39 years as a capital improvement.
This change is a blessing for new range owners. Cash is king when you’re launching a new business, and Section 179 frees up precious cash just when owners need it the most. For example, a range builder investing $300,000 in a new system can now deduct just over $100,000 in year one, assuming a 35% tax bracket, instead of deducting only a few thousand dollars in the first year.
If you’re planning to build a new range … or retrofit an existing one, this change will provide some added flexibility. You now have a significant chuck of money to put to use in whatever way is most important … buying new furniture, stocking inventory, making a new hire, marketing your range, etc.
Just a friendly reminder, be sure to consult a tax expert for specific guidance unique to your situation.