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Old 06-24-2006, 02:48 AM
quickcur@yahoo.com
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Default Re: tax and hiring oversea programmers

Dick Adams wrote:
- quote -

> quickcur[at]yahoo.com wrote:

> > I have a day job. I also have a website selling a software I
> > developed. I am thinking about filing Business gain or lose
> > about my software business in my tax return. I hired one
> > programmer oversea and paid him by cash. Can I claim his
> > salary as my business expense? Thank you very much.


> Yes and, in case of an audit, you will need documentation.
> I suggest a written contract and invoices from the payee
> which include the payee's address and phone number. If the
> total amount is large enough, an auditor may want to contact
> the recipient.
> Sending cash outside of the United States is frowned upon
> for several reasons, e.g., the ficitious vendor scam, money
> laundering, the inability to track the payment to the
> recipient, and the ability of the receipent to exchange the
> US dollars on the Black Market.
> I suggest you prepare a very good explanation for why the
> recipient needed to be paid in cash other by a cash
> equivalent such as an American Express Cheque.


I paid by personal check, is it OK?

Thanks,

qq

Moderator:
It's perfect and it relieves any concerns I would have for
you. Never forget the primary job qualification for an
auditor is to prove your parents were not married. <G
<< ================================================== ===== > << 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. > << ================================================== ===== >
 
Old 06-24-2006, 02:18 AM
Dick Adams
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Posts: n/a
Default Re: tax and hiring oversea programmers

quickcur[at]yahoo.com wrote:

- quote -

> I have a day job. I also have a website selling a software I
> developed. I am thinking about filing Business gain or lose
> about my software business in my tax return. I hired one
> programmer oversea and paid him by cash. Can I claim his
> salary as my business expense? Thank you very much.


Yes and, in case of an audit, you will need documentation.
I suggest a written contract and invoices from the payee
which include the payee's address and phone number. If the
total amount is large enough, an auditor may want to contact
the recipient.

Sending cash outside of the United States is frowned upon
for several reasons, e.g., the ficitious vendor scam, money
laundering, the inability to track the payment to the
recipient, and the ability of the receipent to exchange the
US dollars on the Black Market.

I suggest you prepare a very good explanation for why the
recipient needed to be paid in cash other by a cash
equivalent such as an American Express Cheque.

Dick

<< ================================================== ===== > << 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. > << ================================================== ===== >
  #-1  
Old 06-22-2006, 02:55 AM
quickcur@yahoo.com
Guest
 
Posts: n/a
Default tax and hiring oversea programmers

I have a day job. I also have a website selling a software I
developed. I am thinking about filing Business gain or lose
about my software business in my tax return. I hired one
programmer oversea and paid him by cash. Can I claim his
salary as my business expense? Thank you very much.

Thanks,

q

<< ================================================== ===== > << 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. > << ================================================== ===== >
 

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hiring, oversea, programmers, tax
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