We are required to collect TOT (bed tax) from our guests. Should we simply deduct the bed tax from our income, or is there a place in Turbo Tax to reconcile for it?

[jimgurman]

Bed Tax collected from guests who stay in our vacation rental.  Do we include this tax in our accounting or simply deduct it without documenting it?

[AnnetteB6]

If you collected the tax and then paid it to the taxing authority, you should include it as part of your income and then deduct it as a rental expense.  

As you go through the Schedule E, there is an entry to report 'other taxes' where you could enter the amount of the tax.  Or, enter it as a Miscellaneous Expenses where you can enter your own description and amount.  That way you can be certain what the amount represents.  

@jimgurman

[jimgurman]

Thank you, Annette.  That is helpful information.  Much appreciated.  

Jim