If you could take advantage of the new tax laws to benefit your store’s overall financial positioning, would you do it? Here, we’ll look at how the new tax law saves you dollars on capital investments. Before long, you are on your way to amortizing them in a way that lets you improve your store’s look while increasing your average basket size. Here is what you need to know today.
Asset Depreciation for the Shelves You Buy Now
You have your eye on Lozier store fixtures to upgrade the way customers interact with your brand. The new tax law can make it much easier to pay for them. In the past, you had to contend with a 39-year depreciation of improvements to your retail space. In many cases, you were able to reduce this time to 15 years. Sure, you had to jump through some bureaucratic hoops to do so, but it was worth it.
Now, you can leverage the Tax Cuts and Jobs Act (TCJA) that the Trump Administration put forth. It took out the one-size-fits-all 15-year depreciation of retail improvements. And it replaced the provision with – nothing. Perhaps it was an oversight, but this small detail makes it possible for you to proceed with a bonus depreciation of any piece that has an expected useful life of about two decades or less. This change is causing retailers to be optimistic about benefiting from a 100% bonus depreciation rule.
Assuming that these provisions remain in place, the bonus depreciation will gradually decrease over the next few years. The 100% level remains in place until December 31, 2022. From then on, it gradually decreases each year until it reaches zero percent after 2026.
So, what are your options now?
First and foremost, call your tax accountant and set up an appointment. Then, call DisplayMax Fixtures to fully leverage your savings potential with the store refresh program.
A Store Refresh Leverages the Tax Law Savings Potential in Your Favor
New gondola shelving, for example, could have a tremendous impact on product display options and increase the sales across all categories inside your store. Combine it with upgraded checkout counters that provide some strong visual cues that engage shoppers and get them to add a few dollars more to their basket.
With a store refresh, changes and upgrades will not have a dramatic impact on the structure of your building, there is no need for getting permits, knocking down walls, and scheduling annoying inspections. Best of all, your store can remain open throughout the entire project. You don’t need to close down for weeks and suffer through losing sales and income
The retail experts at DisplayMax can help you with the entire project including new floor plan design, counter and gondola selection, project management details, and actual work. We work overnight to minimize any impact on shoppers
That said, if you have been toying with the idea of making significant build-out changes to your location, now could be the right time to undertake them. After discussing with your accountant how the new tax law saves you dollars on capital investments, moving forward with these plans now does make the most sense. Our store fixtures experts can work with you to revamp the look and feel of your location from the ground up. Contact us today to learn more!