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Need help with tax issues re: payment to outsourcers

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thebigventure
Posts: 334
Joined: 26 Apr 09
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Need help with tax issues re: payment to outsourcers

Hi,
Hopefully someone with big experience in this answers... Mark maybe?
I just wanted to know, when I outsource my websites to be built by Filipinos etc. I understand I CAN get the costs as tax deductable...
Now here's the question. When I buy something through a website or hosting or something, I get an invoice and I keep a copy of that for my accountant.
But what do I do about this? I usually pay my outsourcers through PayPal or Xoom... Even bank sometimes... How can I get these payments recorded so I can show it in tax as deductions?
Regards,
Ashton
Thankyou in advance!
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Last edited by faradina on 12 May 10 10:49 am, edited 1 time in total.
Reason: seo
 

http://www.TheBigVenture.com - Started 6 years ago...finally making $15,000+ per month now!
 
faradina
Posts: 2171
Joined: 01 Jun 09
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Not legal or financial advice:
Proof of business expenses that are accepted when claiming tax deductions differ by location but generally you should have invoices from the outsourcer. If you are paying through paypal, ask them to send invoices through paypal. You can then show the invoice and the paypal transaction in which you paid it as proof of the business expense.
With xoom and bank wire payments, you can still ask them to send you invoices which you can show together with proofs of payments from xoom and the bank.
In some cases and locations, a contract or a written form of agreement between you and your outsourcer will also be required.

Like I mentioned at the start of this post, this is not legal or financial advice. I am neither a lawyer nor a certified public accountant. You should consult a tax professional in your area.
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PremiumMember
thebigventure
Posts: 334
Joined: 26 Apr 09
Trust:
awesome thanks
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http://www.TheBigVenture.com - Started 6 years ago...finally making $15,000+ per month now!
 

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