It depends. If you do not have a clear separation of the income versus the sales tax, you can report the sales tax and then take the deduction. Your information is not wrong as published by the IRS, however not every business owner separates the income as instructed. It's all right to deduct the sales taxes paid if they have been included in income as indicated by VolvoGirl.
On the other hand it is not all right to deduct this expense if the sales tax was never included in the income reported on Schedule C.
@Pete Tax
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
