If you have a rental activity - your rental income and rental expenses are reported on schedule E. There is NO requirement to own the property. However - as it was mentioned above - if you do not own the property - you may not deduct depreciation on that property. Still you may deduct other expenses - for instance if you rent the property from someone else - your rental expenses are deductible
You may not simply decide to use the Schedule C if that is a rental activity. You may use any business code you think is appropriate. The business code itself is for statistical purposes and generally doesn't raise any red flags. You are using the business code for income tax purposes - that is not related to NY Hotel Room Occupancy Tax.
NY Hotel Room Occupancy Tax might be required regardless how your income is reported and regardless which business code is used.
2.) If I simply fill out the Schedule E as outlined above, will anyone even know that "Property B" requires Occupancy Tax to be collected?
When you have rental activity - you may have long term tenants or short term tenants - that is NOT indicated on your income tax forms. If you have short term tenants who occupies a room for less than 180 consecutive days - you are subject of NY Hotel Room Occupancy Tax.
Again - there is nothing on schedule E or any other income
tax forms indicating if you have short or long term tenants.
3.) If I do pay the Occupancy Tax, who collects it and how much is charged?
Hotel Room Occupancy Tax are added to your bill and generally are stated separately as additional to your rent. You collect the tax and remit to taxing authorities
Here is some additional information you might find helpful
NYC-HTX Hotel Room Occupancy Tax Return
NYC-HTXB Hotel Room Occupancy Tax Return (for use by small facility operators only) -
File online with E-File -
Hotel Tax - Certificate of Registration Application -
Hotel Room Occupancy Tax is based on the “rent” being charged for a room: <table
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If the rent for the room is…
The tax will be…
$10 or more, but less than $20
50 cents per day per room + 5.875% of the rent
$20 or more, but less than $30
$1.00 per day per room + 5.875% of the rent
$30 or more, but less than $40
$1.50 per day per room + 5.875% of the rent
$40 or more
$2.00 per day per room* + 5.875% of the rent