This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.  Find out more here  Close
Fiscal cliff deal extends key provisions
January 4 2013

The American Taxpayer Relief Act, which was passed to avert the fiscal cliff, extends key hotelier benefits including the Work Opportunity Tax Credit and bonus depreciation. 

On January 1, H.R. 8, the American Taxpayer Relief Act of 2012, was enacted into law.  The legislation stopped many automatic tax increases which were scheduled to go into effect immediately, temporarily averting the so-called budgetary “fiscal cliff” in Washington. 

The automatic spending reductions of the fiscal cliff were not addressed in the bill, but will be revisited by the new Congress before the deadline in two months.

Among the many provisions of H.R. 8 was the reauthorization of the Work Opportunity Tax Credit (WOTC) through the end of 2013 (and retroactively covering 2012).  These tax credits allow hoteliers to hire disabled and disadvantaged workers, youth, veterans, and other at-risk individuals. Generally the credit is equal to 40 percent of the first year of wages up to $6,000.

Also included in the legislation was the renewal of bonus depreciation, also known as section 179 expensing.  This allows hoteliers to immediately take deductions on purchases of capital equipment rather than depreciate them over a period of time. The maximum deduction for 2012 and 2013 is $500,000, and the asset limit is $2 million. Also, 50 percent of what is spent for capital equipment can be expensed in the first year.

COMMENTS   Show All
Login or enter a name   Post Your Comment  Check to follow this thread via email alerts (must be logged in)
(4000 characters max)

Comments that include links or URLs will be removed to avoid instances of spam. Also, comments that include profanity, lewdness, personal attacks, solicitations or advertising, or other similarly inappropriate or offensive comments or material will be removed from the site. You are fully responsible for the content you post. The opinions expressed in comments do not necessarily reflect the opinions of Hotel News Now or its parent company, STR and its affiliated companies. Please report any violations to our editorial staff

TRENDING
What Booking.com parity play means for hotels
Booking.com to amend rate parity in Europe
Kimpton, Even, dual brands on IHG’s to-do list
Hilton’s midscale brand to launch in 12 months
Don’t expect Hilton to buy Starwood, CEO says
5 fascinating guest satisfaction facts
VIDEO
ARC Trust’s growth has endgame in mind
Smooth sailing so far in ABF migration
Charlestowne sees rising tide for indies
Video: Hunter Conference Day One recap
Video: Hunter Conference Day Two recap
LATEST NEWS
11 key takeaways from Marriott’s Q1 call
Renovations a drag on Host’s Q1 performance
STR reports US Q1 2015 results
Opportunity knocks for brands in Latin America
Brands are cheaper to build than you think
STR reports Canada Q1 2015 results
Contact Us
Hotel News Now
18500 Lake Rd.
Suite 310
Rocky River, Ohio 44116
        
Copyright © 2004 - 2015 Hotel News Now, a division of STR, Inc. All Rights Reserved.   Privacy