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Posted by quickcur@yahoo.com on June 23, 2006, 10:48 pm
Please log in for more thread options Dick Adams wrote:
> quickcur@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>
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