Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Still need to file? Our experts can get your taxes done right. Get started >
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
Tax20213
Level 2

Mixed Beverage Gross Receipts Tax, Mixed Beverage Sales Tax, Sales & Use Tax

If I own a restaurant and pay mixed beverage gross receipts tax, mixed beverage sales tax and sales & use tax. Can I deduct these expenses on my tax return?

2 Replies
Opus 17
Level 15

Mixed Beverage Gross Receipts Tax, Mixed Beverage Sales Tax, Sales & Use Tax

You can deduct any expense that is considered ordinary and necessary, and that certainly includes business taxes you have to pay.

 

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Critter-3
Level 15

Mixed Beverage Gross Receipts Tax, Mixed Beverage Sales Tax, Sales & Use Tax

Depends ... if you report the total GROSS sales ( including the sales taxes collected)  then payment of those taxes you collected and paid  to the proper authorities would be an expense.   If you did NOT set up  your bookkeeping on the gross income method then you would ONLY report the net sales (less of sales taxes) then you cannot deduct the sales taxes ... it is one way or the other as long as you are consistent in your method. 

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing
Manage cookies
v
ABCDEFGHIJKLMNOPQRSTUVWXYZabcdefghijklmnopqrstuvwxyz0123456789-_~