Can I Rent Exercise Equipment with the ERTC?

August 29, 2023
Dayes Law Firm

If you own a gym or fitness center and haven’t yet applied for the Employee Retention Tax Credit (ERTC/ERC), you should be aware that there is limited time left to apply if you qualify. If you’ve received other forms of government aid in the past like the Paycheck Protection Program (PPP) loans and are concerned or confused about what you can do with your ERC money, we’ve got the answers. 

Is it OK to Rent Exercise Equipment with the ERTC?

The ERTC is a tax credit that came into effect at the start of the COVID-19 pandemic. It was implemented to help businesses recover from the financial challenges that arose due to the worldwide health emergency.

If your business experienced fully or partially suspended operations due to government orders during the pandemic, or if it saw a significant decline in gross receipts between March 2020 and December 2021 when compared to the same quarter in 2019, it may be eligible to claim the ERTC.

If you’re a fitness center or gym owner and your business fits those qualifications, it might be a good idea to work with a team of tax professionals skilled in applying for the ERTC, like the ones at Dayes Law Firm, to get your application in soon. Unlike the PPP, the Employee Retention Tax Credit is not a loan and does not need to be repaid – and you can use the funds for whatever your business needs. 

You can basically use ERTC funds for any legitimate purpose, including tackling debt, giving your employees raises or bonuses, or buying new equipment or supplies. Unless your gym and everything in it is brand new, you might want to invest in new or upgraded equipment, and you can indeed choose to buy or rent exercise equipment with the ERTC.

Maximum ERTC Refund Amount

But exercise equipment can be quite expensive to buy or rent, so just how much can you expect to get if you apply for the Employee Retention Tax Credit?

Your ERTC claim could result in a refund of up to $5,000 per employee for the year 2020 and $7,000 per employee per quarter – for a total of $21,000 – for tax year 2021. Qualifying businesses could collect as much as $26,000 per employee by claiming 2020-2021 quarters retroactively, which is quite a chunk of change for a small business.

Dayes Law Firm ERTC Assistance 

At Dayes Law Firm, we can help you determine how much relief you can expect if you claim the Employee Retention Tax Credit. Our experienced ERTC team can work out your eligibility for the ERTC program and help you with every step of your application so the documentation you send to the IRS is as accurate as possible. 

Our firm has comprehensive experience in Employee Retention Tax Credit matters and has been involved in filing for more than $250 million in refunds for many companies already. We would be honored to help you claim this important tax credit for your business, too. 

Please contact us for a free consultation concerning any of your ERTC questions and for help with your application. To learn more, call 800-503-2000 or fill out the contact form on this page to get in touch today. We look forward to hearing from you!