{"id":6418,"date":"2018-01-08T15:50:27","date_gmt":"2018-01-08T15:50:27","guid":{"rendered":"https:\/\/www.arffinancial.com\/development\/?p=6418"},"modified":"2022-01-21T13:23:23","modified_gmt":"2022-01-21T18:23:23","slug":"how-the-new-tax","status":"publish","type":"post","link":"https:\/\/www.arffinancial.com\/development\/how-the-new-tax\/","title":{"rendered":"How the New Tax Law Affects Property Expensing for Hospitality Businesses"},"content":{"rendered":"

\"arf-january-blog-headers-blog1\"<\/a>   The Tax Cuts and Jobs Act made huge changes to the tax code, and one of the biggest benefits could bring huge savings to hospitality business owners. They may be able to write off certain property as a 100% deductible expense immediately after it goes into service. The rules surrounding this bonus depreciation percentage vary, but the ramifications seem to be quite favorable to hospitality business owners. Since many assets can be purchased through hospitality financing<\/a> and deducted immediately \u2014 along with the interest from any business loans \u2014 business owners have a strong incentive to consider eligible property investments that lesson their tax burden. If this all sounds confusing, let\u2019s break it down.<\/p>\n

What Hospitality Assets Qualify for the 100% Bonus Depreciation?<\/h2>\n

The subset of assets that qualifies for a 100% bonus depreciation tax deduction changed slightly compared to before the major tax bill\u2019s passage. Still on the list are assets considered \u201cpersonal property\u201d that have a regular depreciation life of 20 years or less. This can possibly include assets like furniture, computers, doors, service equipment and other business items with a short lifespan. Previously, these short lifespan items had to be new, but they can now be used if they are \u201cnew\u201d to the business owner \u2014 i.e. they have never been placed in service before by them. The property also must have been put in service after September 27, 2017, which means that you may be able to deduct a significant amount of your equipment and furnishing expenses accrued during Q4 2017. The 100% bonus depreciation expires on Jan 1, 2023, when it lowers to 80%. Other property eligible for deduction includes computer software, and water utility property that is not directly related to wastewater collection and diversion. Unfortunately, an oversight during the hasty drafting of the Tax Cuts and Jobs Act omitted the reference to \u201cqualified improvement property,\u201d meaning that some material improvements may no longer qualify as bonus deductible remodeling expenses. Many expect the rules surrounding qualified improvement property to be clarified or the laws to be changed within the coming months. For more information and examples on the changes to the tax law and what items may be eligible for a 100% bonus depreciation, take a look at this in-depth article courtesy of tax expert Anthony Nitti<\/a>.<\/p>\n

Planning Ahead for Taxes, Expenses and Hospitality Financing in the New Year<\/h2>\n

The 100% bonus depreciation deduction can be a windfall for newly purchased hospitality properties or older properties planning on conducting extensive renovations. If your hotel is dated, 2018 can be the perfect time to start planning improvements through hospitality financing<\/a>. You can recoup your investment through boosted bookings, greater market share, and advantageous deductions like the one described above. Click here<\/a> to receive a free, no-obligation quote for hospitality financing in as little as 48 hours. You could qualify for a low-interest loan with minimal documentation and have your funds in just 5 business days!<\/p>\n","protected":false},"excerpt":{"rendered":"

  The Tax Cuts and Jobs Act made huge changes…<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","om_disable_all_campaigns":false,"footnotes":""},"categories":[111,128,691,690],"tags":[],"class_list":{"0":"post-6418","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business-financing","7":"category-day-to-day-business-operations","8":"category-hotel-financing","9":"category-restaurant-financing"},"acf":[],"yoast_head":"\nHow the New Tax Law Affects Property Expensing for Hospitality Businesses - ARF Financial<\/title>\n<meta name=\"description\" content=\"Prepare for tax season by learning new deductions available to hospitality business owners, which can apply to assets purchased using hospitality financing.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.arffinancial.com\/development\/how-the-new-tax\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How the New Tax Law Affects Property Expensing for Hospitality Businesses - ARF Financial\" \/>\n<meta property=\"og:description\" content=\"Prepare for tax season by learning new deductions available to hospitality business owners, which can apply to assets purchased using hospitality financing.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.arffinancial.com\/development\/how-the-new-tax\/\" \/>\n<meta property=\"og:site_name\" content=\"ARF Financial\" \/>\n<meta property=\"article:published_time\" content=\"2018-01-08T15:50:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-01-21T18:23:23+00:00\" \/>\n<meta name=\"author\" content=\"Robert Whited\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Robert Whited\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.arffinancial.com\/development\/how-the-new-tax\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.arffinancial.com\/development\/how-the-new-tax\/\"},\"author\":{\"name\":\"Robert Whited\",\"@id\":\"https:\/\/www.arffinancial.com\/development\/#\/schema\/person\/ab727372fcd4ff548d759472b7c7fecc\"},\"headline\":\"How the New Tax Law Affects Property Expensing for Hospitality Businesses\",\"datePublished\":\"2018-01-08T15:50:27+00:00\",\"dateModified\":\"2022-01-21T18:23:23+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.arffinancial.com\/development\/how-the-new-tax\/\"},\"wordCount\":486,\"publisher\":{\"@id\":\"https:\/\/www.arffinancial.com\/development\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.arffinancial.com\/development\/how-the-new-tax\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.arffinancial.com\/development\/wp-content\/uploads\/2018\/01\/arf-january-blog-headers-blog1.jpg\",\"articleSection\":[\"Business Financing 101\",\"Day-to-Day Business Operations\",\"Hotel Financing\",\"Restaurant Financing\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.arffinancial.com\/development\/how-the-new-tax\/\",\"url\":\"https:\/\/www.arffinancial.com\/development\/how-the-new-tax\/\",\"name\":\"How the New Tax Law Affects Property Expensing for Hospitality Businesses - 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