We (my husband and I) are closing on our first rental property next week. I have been doing market research (craigslist) for comparable rents and keep seeing so much for rent + sales tax. How exactly does this work? How do I figure out how much I will need to charge for that? Is this different than the taxes we will pay at the end of the year on the income?
Local laws will determine if there is any sales tax on rentals, and may be determined by the length of the lease. Yes, sales tax is different than income tax. Talk to your local sales tax office.
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I didn't think Alaska had sales tax, but they may have put it in in the last 25 years since I was there. or is this for an out of state location? in either case, the can usually Google "satename sales tax office" and get the website for the state then you can see if there is a requirement for collecting sales tax and what you have to fill out to get your permit and what the reporting is. This is usually done out of the state treasurer's or comptroller's office.
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