B-com commish

Question:
If you use b-com and pay the 15% commission, how do you handle that on your tax reporting, monthly to local and state.
Example:
If a room rents for $100 on b-com
You pay $15 so the room revenue is $85

• Do you pay your monthly taxes, sales and more on the $85? or the $100?
• and/or do you write off the 15% as advertising/marketing?

I ask as I am looking at putting a new field in guestall that I use for my reporting, and also tax paying. I definitely need to show the % commission, but am wondering what you do there.

Room tax is on the $100 the guest paid. The 15% is under commissions. The way we do it. So, in the marketing budget in QB.
It would be different if you gave the guest a 15% discount. Unless your state requires tax be collected prior to discounting.
But for these purposes, the $100 is taxable revenue; the $15 is expenses.

Plus credit card fees, and then $ to have online res and $ to have myallocator.
okay I think that clarifies for me, thank you. The tax is paid by the guest, so i get that part. But the revenue part was what i had trouble getting my mind around.

Joey Bloggs said:

Plus credit card fees, and then $ to have online res and $ to have myallocator.
okay I think that clarifies for me, thank you. The tax is paid by the guest, so i get that part. But the revenue part was what i had trouble getting my mind around..

Click to expand...

Joey Bloggs said:

Plus credit card fees, and then $ to have online res and $ to have myallocator.

Click to expand...

All COB. All those things are expense. Ditto the commission.
It's annoying to pay someone who will use your money to push their website above yours online. But that's a whole other post !

Joey Bloggs said:

Plus credit card fees, and then $ to have online res and $ to have myallocator.
okay I think that clarifies for me, thank you. The tax is paid by the guest, so i get that part. But the revenue part was what i had trouble getting my mind around..

Click to expand...

I concur with Morticia -- what the guest pays is your revenue, the commission paid to B.c is a business expense to you. The guest pays room taxes based on what they paid.