The Internal Revenue Service recently released a Revenue Procedure that could have significant benefits to businesses that operate retail establishments or restaurants. It can also benefit taxpayers who lease property to certain businesses. This benefit is in the form of a “safe harbor” method that allows qualified taxpayers to immediately deduct 75 percent of their qualified refresh or remodel expenditures while only having to capitalize the remaining 25 percent.

This alert includes:

  • What a “qualified taxpayer” is defined as
  • What qualifies a refresh or remodel expenditure
  • Limits to Safe Harbor Method