Changes in the IRS tax code make it easier and more affordable for salon owners to purchase new spray tan equipment.
Section 179 of the updated IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the current tax year. That means that if a business buys (or lease) a piece of qualifying equipment, it can deduct the FULL PURCHASE PRICE from their gross income.
Simple example: If a business has Gross Income of $50,000 and purchases a new automated spray tan booth for $26,000, the adjust (taxable) Gross Income is reduced by $26,000 to $24,000, which lessens overall tax payment, while allowing the business to invest in itself.
IMPORTANT NOTE: Every business owner should consult with their personal tax advisor to determine how this tax provision will affect their individual business, and whether or not the laws and regulations have changed.
As a reminder, sales/income from spray tanning is 100% exempt from the 10% Tan Tax.