Thanks for the good material provided here. One question also..i'm running a computer repair business in New York and i'm working with 2 contractors and one of them it's from another country - India taking care of my website...i'm paying him with cash by money transfer...can i deduct those money as my expenses, because when i'll declare my expenses at the end of the year and the state will cross check my business, nobody will declare those money and will appear as a false expense in IRS eyes?
The best way to handle that problem is to not pay him as if you were paying wages. Rather, enter into a contract to pay him for services. That contract makes him an independent contractor and you can deduct the full value of the contract as a business expense. In effect, it is a service contract.
riverasierra | Window Shopper | 10/29/2010 - 11:27 pm
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