"jamesd" <jamesd[at]ring4freedom.com> wrote:

- quote -

If that is what he wants, why not? As long as you have
documentation to support the business purpose of the
payment, you should have no problem with the IRS.

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

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jamesd wrote:

- quote -

As Lanny said, it doesn't matter how you pay him. Just be
sure you have an invoice from him that clearly describes the
work he did for your business, and maintain documentation of
the payment.

Katie in San Diego

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jamesd wrote:

- quote -

As Lanny said, it doesn't matter how you pay him. Just be
sure you have an invoice from him that clearly describes the
work he did for your business, and maintain documentation of
the payment.

Katie in San Diego

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"jamesd" <jamesd[at]ring4freedom.com> wrote:

- quote -

A wire transfer to from one bank to another takes 24 to 48
hours.

Stu

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Thanks for the speedy reply Lanny. Because most Egyptians do
not use "banks", he wants me to Western Union him the money.
He said that the banks will take 21 days to process the
check, and he does not want to wait. Do you recommend a
better way?

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"jamesd" <jamesd[at]ring4freedom.com> wrote:

- quote -

How you make payment does not affect the deductibility. You
should have a contract or invoice or other documentation
that shows what work was done and how this relates to the
corporation's business. How does this person want his
payment?

If the Egyptian contractor is not a US citizen or permanent
resident, there is no need to issue a 1099; if they are, the
fact that they are overseas is not relevant.

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I have an S-Corp in Virgina, USA.

I need to pay a person (independent contractor) in Egypt
$2,000 for some work they peformed in Egypt for me.

The Egyptian person has a Citibank personal account.

What is the best way to pay the person for their services
that will give me a tax deduction?

(a) paper check made out to the contractor name, which he
will cash/deposit at his Citibank
(b) western union him the money to his name
(c) third-pary programmer payment service like guru.com

Do I need to file a 1099 since the amount was over $600? How
does all this work??

Obviously, I would like to claim this as a business deduction.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >