Commercial kitchen equipment belongs on Line 13, depreciation and section 179 expense deduction.
Why line 13
Ovens, mixers, refrigeration and hoods are equipment with a life well beyond a year, so they are capitalised and recovered on line 13 through Form 4562, commonly in full under section 179. Small wares are different: pans, knives, containers and sheet trays get replaced constantly and are supplies on line 22, and food itself is cost of goods sold in Part III for a business that sells prepared product. If a piece is permanently installed and becomes part of a leased building, it may be an improvement rather than equipment, which changes its recovery period.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so commercial kitchen equipment lands on Line 13 without you sorting it.
Start for freeWhat commercial kitchen equipment is confused with
- Line 22, supplies
- Pans, knives, containers and other small wares are consumed or replaced within a year, so they are supplies on line 22.
- Part III line 38, part iii line 38, materials and supplies
- Ingredients and packaging are materials and supplies in Part III, which feed cost of goods sold, not line 13.
- Line 20a, rent or lease of vehicles, machinery and equipment
- Equipment you lease, such as a rented combi oven or an ice machine on contract, is rent on line 20a.
Examples that belong on line 13
- A 7,200 dollar commercial convection oven
- A 2,200 dollar reach-in refrigerator for a bakery
- A 4,800 dollar hood and ventilation unit installed in a leased kitchen
- A 1,900 dollar planetary mixer
- A 3,500 dollar griddle and fryer line for a food truck
What does not belong here
- Ingredients and packaging, which are Part III
- Small wares and utensils, which are line 22
- Leased ice machines and espresso equipment, which are line 20a
- Cleaning and servicing, which are line 21
The limit that applies
Permanently installed items may be qualified improvement property rather than equipment; both can be eligible for section 179 or bonus depreciation, whose limits and percentage are set annually.
What to keep
Keep invoices, installation dates and any permit or inspection record that shows when the equipment went into service. Separate installation that becomes part of the building from the movable equipment itself, because they depreciate differently.
Other expenses on line 13
| Expense | Line |
|---|---|
| a business sign | Schedule C, Line 13 |
| a camera and lenses | Schedule C, Line 13 |
| a desk and office chair | Schedule C, Line 13 |
| a laptop or computer | Schedule C, Line 13 |
| a laptop used 70 percent for work | Schedule C, Line 13 |
| a phone handset | Schedule C, Line 13 |
| a trailer | Schedule C, Line 13 |
| capital expenditures | Schedule C, Line 13 |
| software bought outright | Schedule C, Line 13 |
| tools over a few hundred dollars | Schedule C, Line 13 |
Related lookups
- Where do job materials go on Schedule C?
- Where do print on demand supplies go?
- Where do car lease payments go on Schedule C?
Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so commercial kitchen equipment lands on Line 13 without you sorting it.
Start for free