Taxable Status of Short Term Rentals

If short term rentals are taxable in your state and tax is not being calculated on the rental rates entered (the amount in the Tax box remains at 0.00) follow the steps outlined below.

  1. Click Maintenance on the menu bar.
  2. Click Ledger Maintenance.
  3. Click System Categories.
  4. Click Ledger References (General) on the Filter Options tab.
  5. Click the List tab.
  6. Click in the row containing category 1840 'Short Term Rentals' in order to select it.
  7. Click the Details tab.
  8. Click in the Tax Code box and select Tax Rate 1 if you are located in the United States. If you are located in Canada, select the applicable option from the drop down list.

If short term rentals are not taxable in your state and tax is being calculated on the rental rates entered, follow the steps outlined above except in step 8 select Tax Exempt from the Tax Code list box.