Sales Tax?

4 Replies

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?
Thanks!

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.

This post has been removed.

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.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.