The cost of renting a commercial kitchen usually runs $10 to $25 per hour as of 2013, although some commercial kitchens offer unlimited access packages for $600 to $800 per month.
Although rules governing income taxes change regularly, deducting the cost of rental equipment can represent a quicker, simpler -- and in many cases greater -- tax deduction. F inally, when you rent equipment, you increase the opportunities to obtain equipment that will meet the specific needs of your production. This means the rental company can write off the initial investment on their taxes more quickly, making it possible to replace the equipment with newer models. Even for consumer grade equipment, the rental cost (which may be only $50 a day) might make sense if you'll use it for just a few days. The Extras. In addition to the cost of setting up your commercial kitchen, you may need to pay a damage deposit that likely will total about a month's rent. Your landlord may also ask you to pay your last month's rent along with your first month's. You may have to pay rent for at least a few months while you are making your kitchen production-ready, and you will also have to pay a health department licensing fee, which can range from less than a hundred dollars to nearly a thousand dollars depending on the county, state and licensing agency. How to Justify Overhead Costs. Your small business incurs expenses no matter how much money you make. These expenses are overhead costs for items such as rent, insurance, lease payments and utilities. These costs exist no matter how much you sell. You can justify the overhead expense by pointing out the sales increase and suggesting that the company must examine non-overhead costs, such as wages, that are leeching profits. Renters Insurance Statistics. As you begin thinking about your renters policy and how much you’ll be spending on coverage, it might be helpful to consider some statistics. 1  In 2010, the average cost of a rental insurance policy in the U.S. was $185 a year. 2  Renter insurance costs are highest in Mississippi, Louisiana and Oklahoma. Renters insurance deductibles can range from $50 to $1,500. If you opt for a high deductible of $1,000 and your camera and iPad are stolen in a burglary, it will probably not be worthwhile to file a claim. However, if you have a low deductible of $250, filing a claim might make sense. The rents needed to justify apartment construction costs. By Alan Nevin. This month’s column focuses on the costs of developing market-rate rental apartments, and the rents and household incomes needed to justify their development. The summary data is from a more detailed analysis that I recently prepared for a client. That project has a per-unit cost of $295,000 and requires rents of $2,220 and therefore an annual household income of $67,000. • The last example, which is a typical downtown high-rise structure, costs $375,000 per unit to develop. The cost of renting a commercial kitchen usually runs $10 to $25 per hour as of 2013, although some commercial kitchens offer unlimited access packages for $600 to $800 per month. Although renting a commercial kitchen saves money, it does usually limit the space and time you have available for kitchen production. You may have to pay rent for at least a few months while you are making your kitchen production-ready, and you will also have to pay a health department licensing fee, which can range from less than a hundred dollars to nearly a thousand dollars depending on the county, state and licensing agency. Your Trip Must Be for Business. In order to deduct the cost of your trip, it must be primarily for your rental ­activity. This means that you must have a rental purpose in mind before starting out, and you must actually do something for your rental activity while you’re away.  C ost per minute is relatively easy to determine; simply divide the final production cost by the duration of the finished product. For example, if a 30-minute production costs $120,000, the cost per minute is $4,000. This means the rental company can write off the initial investment on their taxes more quickly, making it possible to replace the equipment with newer models. Even for consumer grade equipment, the rental cost (which may be only $50 a day) might make sense if you'll use it for just a few days. Except for studio equipment that's used every day, it's often more economical to rent equipment rather than buy it. There are four basic reasons. First, production equipment becomes outdated quickly. At more than $70,000 for a top-notch video camera, you might assume you'll recoup the cost through several years' use. If you pay cash for a $70,000 camera and use it five years, the cost breaks down to $14,000 a year, plus repair and maintenance expenses. This means the rental company can write off the initial investment on their taxes more quickly, making it possible to replace the equipment with newer models. Even for consumer grade equipment, the rental cost (which may be only $50 a day) might make sense if you'll use it for just a few days.
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justify renting costs