Home› Accounting› Accounting Technical Support

VRBO payments questions

Homestead_42Homestead_42 Member Posts: 1

We have a vacation rental, use VRBO for marketing. I need to note in the transactions the gross booking amount, which has sales taxes applied to it, then a withdrawal by VRBO for their 3 percent credit card processing fee. (They assess the cc fee on both the gross booking AND the sales taxes.) I just don't see how I can post this properly so I have all three of these items visible and available.

in Accounting Technical Support

Comments

  • MikegMikeg Member Posts: 995 ✭✭✭

    Homestead_42,
    The only way I can think of would be to gross up the rental income on a monthly basis based on rentals for the month. That would entail doing a journal entry. You would debit merchant fees and sales tax expense then credit rental revenue so that you arrive at gross. Typically the rental agencies will issue a 1099 at the end of the year.
    Mike G, CPA
    www.mgfinancial.net
    Better Service - Better Pricing

Sign In or Register to comment.