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Sales Tax
when collecting local sales tax there is an option under income. Should it be recorded in income and then under the expense section?
Asked Feb 7, 2010 3:22 AM by: KeoFleX
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If you report your total sales income received, including sales tax collected, as your gross receipts, then you deduct the sales tax as an expense. If you report your sales income without including the sales tax, then you don't count it as a deduction either. For a federal 1040 Schedule C, either method may be used.
Hope this helps,
Mariette
CIRCULAR 230 NOTICE: Under IRS regulations, I must inform you that any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under federal tax law.
Answered Feb 7, 2010 5:40 AM by: Mariette Knoblauch
