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The accounting method used to allocate the cost of a tangible or physical asset over its useful life. In hospitality, it relates to buildings, improvements, and equipment.

The total income generated by a business from its operations, often used to measure the financial performance of hospitality businesses. Includes all income before deducting expenses.

A consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. Hospitality businesses must manage VAT carefully, as it affects pricing and margins.

A tax imposed on hotel or motel rooms, often calculated as a percentage of the room rate. This tax is significant for hospitality businesses as it directly relates to their primary service.

The remaining revenue after direct costs for goods and services sold are deducted from gross revenue. It provides a clear picture of the actual income attributable to the business operations.

Taxes paid when purchases are made on a specific good, such as alcohol or tobacco. Hospitality businesses like hotels and restaurants often deal with excise taxes on such items.

A tax on the profit from the sale of property or an investment. For hospitality industry, capital gains might be relevant when selling property or other significant assets.

The IRS requires businesses with tipped employees, common in hospitality, to report a certain percentage of their gross receipts as tip income, which can affect payroll.

A tax levied by some states on businesses for the privilege of incorporating or doing business in that state. Relevant for hospitality businesses operating as part of a franchise.

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. In hospitality, it's key for understanding the profit margin on services offered.

An amount that taxpayers can subtract from taxes owed to the government. Hospitality businesses can often leverage tax credits for energy efficiency, job creation, and other incentivized actions.

An expense that can be subtracted from gross income to reduce the amount of income that is subject to taxation. Deductibles for hospitality businesses may include operating costs, maintenance, and employee benefits.

Tax imposed by the government directly on income, including wages, salaries, and business earnings. Hospitality businesses must file and pay income taxes on their profits.

A tax charged at the point of purchase for certain goods and services. The customer pays the sales tax, but it is collected and reported by the retailer. In hospitality, it applies to room rentals and food/beverage sales.

A one-year or twelve-month period that a company or government uses for accounting purposes and preparation of its financial statements. Hospitality businesses might not align their fiscal year with the calendar year, depending on the seasonality of their operations.

Income or transactions that are free from tax at the federal, state, or local level. In hospitality, certain nonprofit or governmental entities may be tax exempt when purchasing services.

An amount that an employer withholds from employees' wages and pays directly to the government as part of the employees' tax liabilities. Hospitality businesses must manage withholding taxes for their employees.

A range of incomes subject to a certain income tax rate. Hospitality businesses should be aware of which tax bracket they fall into as it will affect the rate at which their profits are taxed.

The legal seizure of property to satisfy a tax debt. Hospitality businesses need to be aware of levy actions to avoid losing assets critical to operations.

The illegal act of not paying taxes by not reporting all taxable income, or by taking unallowed deductions. Hospitality businesses engaging in such practices face severe penalties.

The amount of income that is used to determine an entity's or individual's income tax. For a hospitality business, it's the profit after all deductions and exemptions are made.

Gross income minus adjustments to income. AGI determines the taxation threshold for hospitality businesses and can affect eligibility for certain tax credits and deductions.

A tax imposed on the transfer of the 'taxable estate' of a deceased person. While not commonly encountered in day-to-day operations, hospitality businesses might be involved in estate planning for property transition.

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff. Hospitality businesses' payroll expenses are subject to payroll tax, which includes FICA taxes and others.

A supplemental income tax required in addition to baseline income tax for certain individuals, corporations, estates, and trusts that have exemptions or special circumstances allowing for lower standard federal income tax. Hospitality entities may be subject to AMT if they have high deductions or tax-exempt income.

A tax that is imposed on the transfer of property by one individual to another while receiving nothing, or less than full value in return. Hospitality businesses may encounter this when transferring ownership stakes without full compensation.

These are specific expenses that can be subtracted from a taxpayer's gross income to lower the taxable income. Hospitality businesses can deduct costs such as employee salaries, operational expenses, and marketing costs.

A reduction in taxable income achieved by claiming allowable deductions such as depreciation, mortgage interest, and medical expenses. In hospitality, the depreciation on property and equipment can act as a tax shield.

Taxes that fund Social Security and Medicare, encompassing both employer and employee contributions. Hospitality businesses must withhold these taxes from employee wages and contribute an equal amount.