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Salon equipment qualifies to be treated as a Section 179 tax deduction. This provision permits, for 2006, the first $100,000.00 in equipment purchases to be fully depreciated in the year of purchase.
A salon owner in a 34% tax bracket who buys $100,000 in new equipment this year would save $34,000 in federal income taxes for 2005 ... $50,000 in new salon equipment would save $17,000. This really reduces the after-tax cost of the equipment ... and permits you to enjoy this benefit entirely in the year of purchase.
Let the IRS and the section 179 benefit help you equip an all new salon ... or remodel your existing salon ... before they change the tax code again.
Plus, there would be additional savings on your state and local taxes; consult your tax advisor on these savings.
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