With a little more than a month to go before April 15, restaurateurs and their accountants who want to minimize their tax liability for 2010 or get a head start on tax planning for 2011 may want to tune in to "2010 Federal Tax Law Changes: Benefits for the Restaurant Industry," a March 3 webinar sponsored by the National Restaurant Association.
A panel of tax experts from the law firm K&L Gates reviewed a series of tax law changes that could benefit restaurant operators, including:
--Investments in property and buildings. The tax bill Congress passed late last year extended through 2011 a speedier depreciation period for certain restaurant improvements, new-construction expenditures, and leasehold improvements, allowing restaurateurs to recover the cost of qualified investments over 15 rather than 39.5 years. In addition, Congress extended bonus-depreciation and Section 179-expensing benefits to allow businesses to deduct a higher amount of costs for investments made in 2010 and 2011. The NRA supported all these measures.
"If there are capital improvements you want to make, there are some real incentives to do them this year," said Roger Wise, partner, K&L Gates, a webinar panelist. Wise said accountants should help restaurateurs figure out how to allocate costs appropriately under the expensing and depreciation laws, to maximize their benefits under each.
--Hiring credits. Panelists reviewed the Work Opportunity Tax Credit (WOTC), which Congress recently modified and extended through 2011. The WOTC offers employers a 40 percent credit against the first $6,000 in wages paid to employees from groups thought to experience significant barriers to finding jobs. There's also a wage credit to help employers offset the cost of paying differential wages to employees in the National Guard who are called up to serve overseas. A third provision allows employers who hired certain unemployed workers during 2010 to claim a tax credit for each new employee retained one year.
Visit www.restaurant.org/events/webinars to listen to the full webinar.