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. 

HNN Newswire

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
Tiered Wi-Fi emerges as new industry model
How to mitigate dependence on OTAs
Heartbleed a ‘significant’ threat to hotels
Owners talk OTAs, branding, living wage
Omni Nashville GM hits hotel jackpot
The role of today’s management company
VIDEO
Hunter Hotel Conference postgame wrap
Bazin outlines Accor investment strategy
Accor's Bazin talks growth
Sébastien Bazin's view from the top
Chris Nassetta talks lifestyle brand
LATEST NEWS
Sustainability's deep roots
What do millennials want from a green hotel?
Laws to supplant brands’ green mandates
Sustainable hotel development more accessible
Hotel meeting planners look for green
‘Green’ deeply engrained in hotel industry
Contact Us
Hotel News Now
18500 Lake Rd.
Suite 310
Rocky River, Ohio 44116
        
Copyright © 2004 - 2014 Hotel News Now, a division of STR, Inc. All Rights Reserved.   Privacy