TAXES - Foreign Contractor - GoFuckYourself.com

V_RocKs · 01-03-2007, 10:01 PM

Open question where I assume you are NOT liable for any information you give as an answer (for those here who just love to sue or not answer because of a fear of being sued).

If you contract with a designer who lives in Romania, how do you handle the payments you paid such a person on your taxes? Say if you paid them $3500 for work here and there... How do you remove it from your profits?

WiredGuy · 01-03-2007, 10:03 PM

It's an expense, hopefully you have some sort of a receipt to prove the expense.
WG

minusonebit · 01-03-2007, 10:05 PM

The same way you write off the phone bill.

Sosa · 01-03-2007, 10:08 PM

Whichever way you paid them, document it what it was for etc.

V_RocKs · 01-03-2007, 10:27 PM

Quote:

Originally Posted by WiredGuy

It's an expense, hopefully you have some sort of a receipt to prove the expense.
WG

Most people here that you make Epassporte or Paypal payments to don't usually give you a receipt...

Anyone got a for instance of how they would handle sample situations?

Like say you see someone on here post:

Banners and Buttons Sale!

Today and today only you get banners and buttons done at 1/2 price, see my sig for current full pricing!

Say you take him up on that offer and pay him via Epassporte $100 total.

How do you personally prove the expense?

edgeprod · 01-03-2007, 10:30 PM

Quote:

Originally Posted by V_RocKs

How do you personally prove the expense?

Doesn't Epass have a record of it? Print it, I'd say.

RawAlex · 01-03-2007, 10:42 PM

Print out your epass transactions as they happen... but make sure that you have also been declaring your epass income, otherwise you are opening the door to being investigated!

As for the payment, it isn't hiring someone, it is work for hire contract, which is a direct expense (I have a particular accounting code for website design, another for content, etc). You didn't hire an employee, you just bought a finished product.

$5 submissions · 01-03-2007, 10:45 PM

Ask for an invoice

pornguy · 01-03-2007, 10:45 PM

Print out the transactions, and that is what you use. You may get audited, but it can be won.

WiredGuy · 01-03-2007, 10:50 PM

Quote:

Originally Posted by V_RocKs

Most people here that you make Epassporte or Paypal payments to don't usually give you a receipt...

Anyone got a for instance of how they would handle sample situations?

Like say you see someone on here post:

Banners and Buttons Sale!

Today and today only you get banners and buttons done at 1/2 price, see my sig for current full pricing!

Say you take him up on that offer and pay him via Epassporte $100 total.

How do you personally prove the expense?

Ask for a receipt. Or make sure the paypal / epassporte purchase shows what was bought.
WG

After Shock Media · 01-03-2007, 10:52 PM

I always ask for an invoice.
I also print out paypal and epass information.
I also include notations in the paypal or epass information box when sending money.

GT-Omar · 01-03-2007, 11:07 PM

In my opinion I believe you should get an invoice, print your epass transactions, and attach them to a 1099 form. At least that should cover you.

V_RocKs · 01-04-2007, 01:18 AM

Quote:

Originally Posted by After Shock Media

I always ask for an invoice.
I also print out paypal and epass information.
I also include notations in the paypal or epass information box when sending money.

I did that a lot lately but not a lot in the beginning of the year...

So I am wondering about generating that data before tax time...

Perhaps I need to go back now and ask for certain people to generate an invoice for me...?

$5 submissions · 01-04-2007, 04:07 AM

Quote:

Originally Posted by V_RocKs

I did that a lot lately but not a lot in the beginning of the year...

So I am wondering about generating that data before tax time...

Perhaps I need to go back now and ask for certain people to generate an invoice for me...?

You may also want to look into getting a bookkeeper. There's some online bookkeepers that can compile your books for you so everything is documented and ready for your tax preparer.

samsam · 01-04-2007, 04:30 AM

why pay him via epass? keep epass secret

why not pay him direct from your bank then at least you have an additional record on your statements no?

slapass · 01-04-2007, 05:22 AM

Print the Epass reciept and write any info you need on it and put the date of the transaction like you did the day it happened.

Example - Paid Joe Smith for banners 2/21/2006.

Perfectly legal.

cardinalvices · 01-04-2007, 05:59 AM

Piece of cake, simply ask for invoice.
You may want to also enter into a contract between you two. One part of the contract could say something like:

Acknowledgment. DESIGNER understands and agrees that: (a) DESIGNER will not be treated as COMPANY’s employee for federal tax purposes; (b) COMPANY will not withhold on DESIGNER’s behalf any sums for income tax, unemployment insurance, Medicare, Social Security or any other withholding pursuant to any law or requirement of any governmental body, or make available any of the benefits afforded to COMPANY’s employees; (c) All of such payments, withholdings or benefits, if any, are DESIGNER’s sole responsibility; and (d) DESIGNER will indemnify COMPANY and hold COMPANY harmless from any and all loss or liability arising from COMPANY’s failure to make such payments, withholdings and benefits, if any.

ToplistBlog_Com · 01-04-2007, 06:32 AM

Is There any better there???

ToplistBlog_Com · 01-04-2007, 06:34 AM

Really??

ToplistBlog_Com · 01-04-2007, 06:40 AM

Really??

ToplistBlog_Com · 01-04-2007, 06:45 AM

Really.. thats fantastic work

polish_aristocrat · 01-04-2007, 06:57 AM

TopListBlog_Com, great input buddy

ForteCash · 01-04-2007, 07:12 AM

Our rule is no invoice, no payment. plain and simple.

01-03-2007, 10:01 PM	#1
V_RocKs Damn Right I Kiss Ass! Industry Role: Join Date: Dec 2003 Location: Cowtown, USA Posts: 32,422	TAXES - Foreign Contractor Open question where I assume you are NOT liable for any information you give as an answer (for those here who just love to sue or not answer because of a fear of being sued). If you contract with a designer who lives in Romania, how do you handle the payments you paid such a person on your taxes? Say if you paid them $3500 for work here and there... How do you remove it from your profits?

01-03-2007, 10:03 PM	#2
WiredGuy Pounding Googlebot Industry Role: Join Date: Aug 2002 Location: Canada Posts: 34,487	It's an expense, hopefully you have some sort of a receipt to prove the expense. WG __________________ I play with Google.

01-03-2007, 10:45 PM	#8
$5 submissions I help you SUCCEED Industry Role: Join Date: Nov 2003 Location: The Pearl of the Orient Seas Posts: 32,195	Ask for an invoice __________________ Need a NON-ADULT income stream? We build your YOUTUBE CHANNEL for only $20 per video! For Hire: $3/hour or $400 per month Marketing Specialist Virtual Assistants

01-03-2007, 10:45 PM	#9
pornguy Too lazy to set a custom title Industry Role: Join Date: Mar 2003 Location: Homeless Posts: 62,911	Print out the transactions, and that is what you use. You may get audited, but it can be won. __________________ PornGuy skype me pornguy_epic AmateurDough The Hottes Shemales online! TChicks.com \| Angeles Cid \| Mariana Cordoba \| MAILERS WELCOME!

01-03-2007, 10:52 PM	#11
After Shock Media It's coming look busy Join Date: Mar 2001 Location: "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn". Posts: 35,299	I always ask for an invoice. I also print out paypal and epass information. I also include notations in the paypal or epass information box when sending money. __________________ [email protected] ICQ:135982156 AIM: Aftershockmed1a MSN: [email protected]

01-03-2007, 10:05 PM	#3
minusonebit So Fucking Banned Join Date: Feb 2006 Location: [email protected] Posts: 7,391	The same way you write off the phone bill.

01-03-2007, 10:08 PM	#4
Sosa In Tushy Land Join Date: Oct 2002 Location: Nebraska Posts: 40,149	Whichever way you paid them, document it what it was for etc.

01-03-2007, 10:42 PM	#7
RawAlex So Fucking Banned Join Date: Oct 2003 Location: In a house. Posts: 9,465	Print out your epass transactions as they happen... but make sure that you have also been declaring your epass income, otherwise you are opening the door to being investigated! As for the payment, it isn't hiring someone, it is work for hire contract, which is a direct expense (I have a particular accounting code for website design, another for content, etc). You didn't hire an employee, you just bought a finished product.

01-03-2007, 11:07 PM	#12
GT-Omar DM at Performive.com Industry Role: Join Date: Aug 2006 Location: Atlanta, G.A. Posts: 2,968	In my opinion I believe you should get an invoice, print your epass transactions, and attach them to a 1099 form. At least that should cover you. __________________ Email me Skype me

01-04-2007, 04:30 AM	#15
samsam So Fucking Banned Join Date: Jun 2002 Location: Fla Posts: 682	why pay him via epass? keep epass secret why not pay him direct from your bank then at least you have an additional record on your statements no?

01-04-2007, 05:22 AM	#16
slapass Too lazy to set a custom title Join Date: Nov 2002 Location: Earth Posts: 14,625	Print the Epass reciept and write any info you need on it and put the date of the transaction like you did the day it happened. Example - Paid Joe Smith for banners 2/21/2006. Perfectly legal.

01-04-2007, 05:59 AM	#17
cardinalvices Confirmed User Join Date: Dec 2006 Posts: 2,084	Piece of cake, simply ask for invoice. You may want to also enter into a contract between you two. One part of the contract could say something like: Acknowledgment. DESIGNER understands and agrees that: (a) DESIGNER will not be treated as COMPANY’s employee for federal tax purposes; (b) COMPANY will not withhold on DESIGNER’s behalf any sums for income tax, unemployment insurance, Medicare, Social Security or any other withholding pursuant to any law or requirement of any governmental body, or make available any of the benefits afforded to COMPANY’s employees; (c) All of such payments, withholdings or benefits, if any, are DESIGNER’s sole responsibility; and (d) DESIGNER will indemnify COMPANY and hold COMPANY harmless from any and all loss or liability arising from COMPANY’s failure to make such payments, withholdings and benefits, if any. __________________ Cardinal Vices Studio - your one stop shop for webdesign! Paysites \| Consulting \| Tube sites \| TGPs \| Galleries/Banner ads \| Flash peel ads Start your own cam site - Get Live Cam Site Solution

01-04-2007, 06:32 AM	#18
ToplistBlog_Com So Fucking Banned Join Date: Jul 2006 Location: Queens NY Posts: 2,065	Is There any better there???

01-04-2007, 06:34 AM	#19
ToplistBlog_Com So Fucking Banned Join Date: Jul 2006 Location: Queens NY Posts: 2,065	Really??

01-04-2007, 06:40 AM	#20
ToplistBlog_Com So Fucking Banned Join Date: Jul 2006 Location: Queens NY Posts: 2,065	Really??

01-04-2007, 06:45 AM	#21
ToplistBlog_Com So Fucking Banned Join Date: Jul 2006 Location: Queens NY Posts: 2,065	Really.. thats fantastic work

01-04-2007, 06:57 AM	#22
polish_aristocrat Too lazy to set a custom title Join Date: Jul 2002 Posts: 40,377	TopListBlog_Com, great input buddy __________________ I don't use ICQ anymore.

01-04-2007, 07:12 AM	#23
ForteCash Confirmed User Join Date: Feb 2006 Location: Kansas City, Missouri Posts: 3,278	Our rule is no invoice, no payment. plain and simple. __________________ NO PILLS - NO EXPENSIVE STRETCHERS - JUST REAL EXERCISES THAT WORK! "Upsell Your Members The Top Penis Enlargement Site!" Link Exchanges & Traffic Trades www.penilefitness.com/links/ ICQ: 63935693 $50 per trial with www.ForteCash.com