Planning & cost

Section 179, Financing & Leasing Restaurant Equipment

How Section 179, bonus depreciation, equipment loans and leasing work for restaurant equipment — and how to decide lease vs buy. Not tax advice; confirm current-year limits.
Educational, not legal advice. Codes vary by jurisdiction — always confirm with your local health department and building authority (AHJ).

Section 179 lets a business deduct the full purchase price of qualifying equipment in the year it's placed in service, instead of depreciating it over years — up to an annual limit that's indexed each year (well over $1 million in recent years). It applies to new-to-you equipment, so quality used gear can qualify too. Always confirm the current-year cap and your eligibility with a tax professional.

Your options

For the loan and tax side in depth — SBA loans, Section 179, build-out financing — see SBADecoded. This page is educational, not tax advice.

Frequently asked

Does restaurant equipment qualify for Section 179?
Generally yes — commercial kitchen equipment used more than 50% for business typically qualifies for the Section 179 deduction, up to the annual indexed limit. Confirm specifics with a tax professional for the current tax year.
Can you take Section 179 on used equipment?
Yes. Section 179 applies to equipment that is new to your business, so used equipment generally qualifies (with some rules, such as not buying from a related party). Verify with your accountant.
Is it better to lease or buy restaurant equipment?
Buying (often with a loan) plus Section 179 usually wins if you have taxable income and will keep the equipment. Leasing preserves upfront cash and can suit fast-changing or short-term needs — compare the total cost and the deduction treatment.
How does rent-to-own equipment work?
You make payments over a term and own the equipment at the end. It's easier to qualify for than a loan but usually costs more overall; read the total-cost and buyout terms carefully.

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