What I mean to say is this.
Say I want $100 for the room.
Guest pays $100 for the room but then owes 13% in taxes - and keep in mind this is the tax for the GUEST to pay - it’s not my tax.
A) charge $100 for the room, pay the $13 taxes out of my pocket, and net only $87 or
B) charge $100 for the room, collect the $13 tax from my guest, and net $100
C) Charge $113 for the room, pay the $15 taxes out of my pocket, and net $98 or
D) Charge $100 for the room, but when I complete my tax form I remove $11 from my gross to reduce my tax basis to $89. $89*.13=$11.57. I then net $88.43
Writing out the scenarios like this it actually looks like my best option is option ‘C’ so I don’t have to deal with the confusion with my guests, and recording the cash received for each guest.
I just hate this since most places in the world don’t have to worry with it. I’m a black-and-white kind of person. I want THEM to pay THEIR tax.
And this has everything to do with sales & occupancy returns, not federal.