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What is the difference between an income tax and a sales/lodging tax?

Income taxes are reported and paid annually to the Federal and many state governments on "taxable" income, which is income after allowed expense deductions. A sales/lodging tax is a tax levied by state and city agencies (not Federal) and requires you to collect tax on the gross amount collected from your guests renting your vacation property - there are no deductions. Also, sales/lodging taxes are due monthly and/or quarterly, not annually, like income taxes.

Are you registered, licensed and collecting the right tax? Being wrong is expensive.

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