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Accounting for Payment Of Sales Taxes
- Subject: Accounting for Payment Of Sales Taxes
- From: Luke <..hidden..>
- Date: Mon, 2 Aug 2010 04:10:52 -0400 (EDT)
Let us say that we have a sales tax liability of 100.00.
To pay that from a checking account, I am probably just supposed to enter
a GL transaction, crediting a bank account, and debiting the sales tax
liability accounts in question.
However, how can I go about showing the payment of sales tax as an
expense? My only other alternative, is to enter amounts paid as sales
tax, as write-in items on the reports sent to the accountant for tax
purposes, since sales taxes are deductible. That is, as I recall, exactly
what I used to do, when operating a business in a sales tax jurisdiction,
as I now am again.
What must I do to have some record of this--I.E. apply it to a "sales
taxes paid" expense account?