from IRS schedule C instructions
include sales tax collected in gross income on line 1 and then take a deduction on the tax line for sales tax paid.
Line 23
You can deduct the following taxes and
licenses on this line.
• State and local sales taxes imposed
on you as the seller of goods or services.
If you collected this tax from the buyer,
you must also include the amount collected in gross receipts or sales on
line 1
