In the hotel industry, I've seen lodging taxes lumped in as part of income and then expensed back out since hotels are valued as a multiple of gross sales.
From an accounting standpoint, this doesn't seem right as these taxes are a current liability that is paid each month versus a true 'income' and 'expense'.
But I could see why this industry would do this if the value of a property is based on its multiple of gross sales.
Does anyone know what the standard is in this industry? Lodging taxes counted as income or not?
From an accounting standpoint, this doesn't seem right as these taxes are a current liability that is paid each month versus a true 'income' and 'expense'.
But I could see why this industry would do this if the value of a property is based on its multiple of gross sales.
Does anyone know what the standard is in this industry? Lodging taxes counted as income or not?
