Charles Bailey Quoted in Franchise Times

Written on April 7, 2016

In an article published in the Spring/Summer 2016 issue of the Franchise Times Book of Brands Directory, Charles Bailey and CFO of Church’s Chicken, offer guidance on the IRS’ Remodel Safe Harbor Rule. The article highlights five key things to know about the new tax rule. See the key points below. 1. The “remodel safe harbor rule,” as it’s known, offers significant benefits to restaurant owners that remodel. 2. To qualify, operators must be publicly held or have audited financial statements—so the one-to-three unit operators may not benefit, unless they have audited financial statements. Larger operators definitely will, provided their financial statements are audited. 3. The biggest bang: Taxpayers can deduct 75 percent of qualified remodeling expenses in the first year, rather than spreading the deduction over as many as 39 years, for an immediate, significant tax cut. 4. Also, qualified improvements under previous law could be written off over 15 years, but that was only a temporary provision. Lending certainty to operators’ plans, Congress has now made the shorter time frame permanent. 5. Of course, don’t even think about taking this advice without consulting with your own CPAs, experts insist. You can find the full article here.

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