Taxes -- Accrual or Cash Based?

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Inn-Nerd

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Hi all,
To my knowledge, all Trustee Taxes (hotel tax, room tax, sales tax, etc.) are all to be reported and paid based on cash-based accounting reports (i.e., one only pays trustee taxes that have actually been collected). Are there any jurisdictions which require otherwise?
I ask this because I am discussing what I believe to be issues with the reporting in one of the systems that I am using--and I want to make a case to the developers to make a change on a global level in their system--since I cannot imagine that anyone is required to pay taxes on either uncollected revenue (i.e., Accounts Receivable) or on No-Show reservations (regardless of whether a cancellation penalty has been collected or not).
Thanks!
 
I wouldn't consider a reservation a sale, more of an appointment to make a sale at a future time, an unpaid no show would be a sale that didn't happen, but if I charged for a no show or some deposit or fee then I think the taxing authorities would see that money as a sale or income on which tax was due.
 
We pay tax each month for ONLY Rooms that were occupied on those specific days of the month. If a room arrives at the last day of the month, and is staying for four days. Only the tax collected for the first day falling in that month is paid. The next three days would be paid next month taxes. Is this what you are talking about?
 
Interesting comments.
If they pay you then you have to pay tax on it, in that month. So for us if someone bought a gift certificate today I received the money today in July, so pay it on the July taxes. Not on a reservation made, but any actual $.
 
I charge and pay taxes on no-shows. It is revenue. Not on reservations until I collect the money - reservations have been known to cancel.
 
We pay tax each month for ONLY Rooms that were occupied on those specific days of the month. If a room arrives at the last day of the month, and is staying for four days. Only the tax collected for the first day falling in that month is paid. The next three days would be paid next month taxes. Is this what you are talking about?.
Momma Smurf said:
We pay tax each month for ONLY Rooms that were occupied on those specific days of the month. If a room arrives at the last day of the month, and is staying for four days. Only the tax collected for the first day falling in that month is paid. The next three days would be paid next month taxes. Is this what you are talking about?
that's how we do it, but no tax remitted on gift cards or deposits until the guest actually shows up. No shows are a different kettle of fish. No tax collected on no shows. No tax collected on 'fees', either. Like late arrival or cancellation fee.
 
Interesting comments.
If they pay you then you have to pay tax on it, in that month. So for us if someone bought a gift certificate today I received the money today in July, so pay it on the July taxes. Not on a reservation made, but any actual $..
JBloggs said:
Interesting comments.
If they pay you then you have to pay tax on it, in that month. So for us if someone bought a gift certificate today I received the money today in July, so pay it on the July taxes. Not on a reservation made, but any actual $.
Not here so it sounds like a state by state rule.
Like some places that say you have to charge sales tax on the full amount of the sale even if someone uses a coupon. Other places don't do that.
 
I charge and pay taxes on no-shows. It is revenue. Not on reservations until I collect the money - reservations have been known to cancel..
gillumhouse said:
I charge and pay taxes on no-shows. It is revenue. Not on reservations until I collect the money - reservations have been known to cancel.
Income tax on no shows. Not sales tax. No sale took place. The room charge is now a service fee. Unless there is tax on service fees. Which is something we keep arguing against.
 
I pay room tax on no-shows. Their deposit payment includes room tax. My thinking is it's the room that's rented and if it's been paid for, then the county/city get their cut. Really, who cares if there are bodies in it or not?
GC income is declared in the year it was purchased. Room tax is paid for the actual date they stayed.
 
We pay tax each month for ONLY Rooms that were occupied on those specific days of the month. If a room arrives at the last day of the month, and is staying for four days. Only the tax collected for the first day falling in that month is paid. The next three days would be paid next month taxes. Is this what you are talking about?.
Momma Smurf said:
We pay tax each month for ONLY Rooms that were occupied on those specific days of the month. If a room arrives at the last day of the month, and is staying for four days. Only the tax collected for the first day falling in that month is paid. The next three days would be paid next month taxes. Is this what you are talking about?
that's how we do it, but no tax remitted on gift cards or deposits until the guest actually shows up. No shows are a different kettle of fish. No tax collected on no shows. No tax collected on 'fees', either. Like late arrival or cancellation fee.
.
Morticia said:
Momma Smurf said:
We pay tax each month for ONLY Rooms that were occupied on those specific days of the month. If a room arrives at the last day of the month, and is staying for four days. Only the tax collected for the first day falling in that month is paid. The next three days would be paid next month taxes. Is this what you are talking about?
that's how we do it, but no tax remitted on gift cards or deposits until the guest actually shows up. No shows are a different kettle of fish. No tax collected on no shows. No tax collected on 'fees', either. Like late arrival or cancellation fee.
You sell many more than we do, our pittance is easier to just pay it up front and forget about it.
 
I pay room tax on no-shows. Their deposit payment includes room tax. My thinking is it's the room that's rented and if it's been paid for, then the county/city get their cut. Really, who cares if there are bodies in it or not?
GC income is declared in the year it was purchased. Room tax is paid for the actual date they stayed..
Breakfast Diva said:
I pay room tax on no-shows. Their deposit payment includes room tax. My thinking is it's the room that's rented and if it's been paid for, then the county/city get their cut. Really, who cares if there are bodies in it or not?
GC income is declared in the year it was purchased. Room tax is paid for the actual date they stayed.
I agree except the room/lodging/transient tax is paid when the $ changes hands. I never thought about a no-show becoming a service fee, if they no show they pay for that night, I am not going to let them off that tax too, they get to pay for all of it.
 
We pay tax each month for ONLY Rooms that were occupied on those specific days of the month. If a room arrives at the last day of the month, and is staying for four days. Only the tax collected for the first day falling in that month is paid. The next three days would be paid next month taxes. Is this what you are talking about?.
Momma Smurf said:
We pay tax each month for ONLY Rooms that were occupied on those specific days of the month. If a room arrives at the last day of the month, and is staying for four days. Only the tax collected for the first day falling in that month is paid. The next three days would be paid next month taxes. Is this what you are talking about?
that's how we do it, but no tax remitted on gift cards or deposits until the guest actually shows up. No shows are a different kettle of fish. No tax collected on no shows. No tax collected on 'fees', either. Like late arrival or cancellation fee.
.
Same. Gift cards and deposits are a liability. Pay income tax on them in year received, but not room tax until a room is actually occupied.
 
I pay room tax on no-shows. Their deposit payment includes room tax. My thinking is it's the room that's rented and if it's been paid for, then the county/city get their cut. Really, who cares if there are bodies in it or not?
GC income is declared in the year it was purchased. Room tax is paid for the actual date they stayed..
I charge tax on no-shows because it is revenue and I am NOT fighting with the State Tax Dept piranhas.
 
I pay room tax on no-shows. Their deposit payment includes room tax. My thinking is it's the room that's rented and if it's been paid for, then the county/city get their cut. Really, who cares if there are bodies in it or not?
GC income is declared in the year it was purchased. Room tax is paid for the actual date they stayed..
Ditto
 
We pay tax each month for ONLY Rooms that were occupied on those specific days of the month. If a room arrives at the last day of the month, and is staying for four days. Only the tax collected for the first day falling in that month is paid. The next three days would be paid next month taxes. Is this what you are talking about?.
Momma Smurf said:
We pay tax each month for ONLY Rooms that were occupied on those specific days of the month. If a room arrives at the last day of the month, and is staying for four days. Only the tax collected for the first day falling in that month is paid. The next three days would be paid next month taxes. Is this what you are talking about?
that's how we do it, but no tax remitted on gift cards or deposits until the guest actually shows up. No shows are a different kettle of fish. No tax collected on no shows. No tax collected on 'fees', either. Like late arrival or cancellation fee.
.
Morticia said:
Momma Smurf said:
We pay tax each month for ONLY Rooms that were occupied on those specific days of the month. If a room arrives at the last day of the month, and is staying for four days. Only the tax collected for the first day falling in that month is paid. The next three days would be paid next month taxes. Is this what you are talking about?
that's how we do it, but no tax remitted on gift cards or deposits until the guest actually shows up. No shows are a different kettle of fish. No tax collected on no shows. No tax collected on 'fees', either. Like late arrival or cancellation fee.
We ditto BD. Pay tax on no shows cause we collected it. Also GC income (Sold-Redeemed) we declare for income taxes at end of year (not lodging tax). No tax on Cancellation Fees.
 
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