Tax Return Changes for Hotels and Hospitality | HelloBooks Hotels have tipped staff across several occupation codes, overtime, and new depreciation rules for renovations. What hospitality clients need for 2026.
A hotel can have housekeepers, bell staff, concierges, bartenders and drivers, each potentially in a different tipped occupation group. Add capital spending on rooms, and several changes land at once.
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Bonus depreciation
100% for property acquired after Jan 19, 2025
Applies: Tax years 2025 and 2026From IRS.gov · checked October 10, 2026
Guest-facing roles fall into several tipped occupation groups, and each worker’s code goes on year-end forms from 2026. Furniture, fixtures and equipment bought for refurbishments can be written off in full under 100% bonus depreciation for property acquired after January 19, 2025.
Large employers with round-the-clock shifts may find the expanded employer childcare credit worth reviewing, now that the cap is $500,000 from 2026.
Keep a fixed asset register by property and acquisition date, since the bonus rules turn on when an asset was acquired. Capture supplier invoices for refurbishments as they arrive with bill capture, so the cost and date are in the books before year end.
The plain-English summary for business owners
Payroll and information returns · tipped occupations
Business returns · Form 4562
Business returns · employer credits
General information for tax professionals, not advice on a specific return. Figures are from IRS.gov on the date shown; check the current IRS instructions before filing.
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