Background Image

Accounting

Tax Issues that Restaurants Need to Consider

The New Remodel/Refresh Safe Harbor for Retail Establishments and Restaurants included within Revenue Procedure 2015-56 is effective for tax years beginning after December 31, 2013. The revenue procedure provides certain taxpayers engaged in the trade or business of operating a retail establishment or restaurant with a safe harbor method for determining whether expenditures to remodel or refresh a qualified building are deductible or must be capitalized as improvements.

Under the new safe harbor method of accounting, a qualified taxpayer must treat 75% of qualified costs as deductible and must capitalize the remaining 25% of qualified costs as improvements.

Want to continue reading?

Enter your email below to receive your free eBook.

  • Mazars is a global audit, accounting and consulting group employing more than 17,000 professionals in 77 countries through member firms. With head offices in France, Mazars has a network of correspondent partners and joint ventures in a further 21 countries and is a founding member of the Praxity alliance, a network of independent firms.