Ed Meyette wrote the Power Lunch guest column in the April 2024 issue of Food Processing, which featured the magazine's annual Capital Spending Outlook.
Consider cost segregation studies and the tax rules when building or modernizing your plant.
Capital Spending Outlook delves into the substantial investments made by food and beverage processors to establish new facilities or enhance existing ones. Federal income tax principles generally recognize these investments as fixed assets with benefits extending beyond the current year.
To account for the long-term benefits, federal tax regulations mandate that the costs of these assets be depreciated over several years. These plant-related endeavors often encompass various expenses like equipment, buildings, improvements to buildings and land, and process-related assets that blur the distinction between building and equipment.
Don’t overlook ways to gain ROI from your capital investments
Food and beverage processors – we can help you navigate complexity in federal tax rules around depreciation. Contact us to learn more.
