Other Taxes The following are other taxes you can deduct if you incur them inthe ordinary course of your trade or business. Excise taxes.hotel a EdimburgoYou can deduct as a business expense all excise taxes that areordinary and necessary expenses of carrying on your trade or business. Franchise taxes.You can deduct corporate franchise taxes as a business expense. Fuel taxes.Taxes on gasoline, diesel fuel, and other motor fuels that you usein your business are usually included as part of the cost of the fuel.Do not deduct these taxes as a separate item. You may be entitled to a credit or refund for federal excise taxyou paid on fuels used for certain purposes. For more information, seePublication 378. Occupational taxes.You can deduct as a business expense an occupational tax charged ata flat rate by a locality for the privilege of working or conducting abusiness in the locality. Personal property tax.You can deduct any tax imposed by a state or local government onpersonal property used in your trade or business. Sales tax.ERROR MSGTreat any sales tax you pay on a service or on the purchase or useof property as part of the cost of the service or property. If theservice or the cost or use of the property is a deductible businessexpense, you can deduct the tax as part of that service or cost. Ifthe property is merchandise bought for resale, the sales tax is partof the cost of the merchandise. If the property is depreciable, addthe sales tax to the basis for depreciation. For more information onbasis, see Publication 551. Caution: Do not deduct state and local sales taxes imposed on the buyer thatyou must collect and pay over to the state or local government. Do notinclude these taxes in gross receipts or sales. Self-employment tax.Hoteles economicos en BoracayYou can deduct one-half of your self-employment tax as a businessexpense in figuring your adjusted gross income. This deduction onlyaffects your income tax. It does not affect your net earnings fromself-employment or your self-employment tax. Thira luxury hotelsTo deduct the tax, enter on Form 1040, line 27, the amount shown onthe "Deduction for one-half of self-employment tax" line ofSchedule SE (Form 1040). For more information on self-employment tax, see Publication 533.