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Tax Write Off Question

Discussion in 'Accounts and Finance' started by ARFiveStar, Oct 4, 2017.

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  1. ARFiveStar

    ARFiveStar Member

    In our business, I will on occasion hire a friend or family to help with a job. This is usually a one time event, which I will pay them less than $100 cash at the end of the day. Is there a way to write this off as a business expense even though I don't have a receipt for the transaction?
  2. djbaxter

    djbaxter Administrator Moderator Member

    I don't know US laws on this issue. In Canada, with increasing use of NetFiling, you do not need to submit receipts for small expenses like the one you describe, but you do of course need to be able to produce a receipt if the taxman requests one.

    Why not keep a standard small receipt book handy and just have the individual sign it just in case? That would cover you. For past jobs, if US law is similar to Canada, can you reach the individuals retroactively to obtain a receipt if you need one?
  3. VWalker04

    VWalker04 Member

    Yeah I would agree. Anything to document any transaction in case of an audit situation would be proactive. Good luck!

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