Write off, no invoice?
I am a first-time property owner, and I just purchased a triplex; I kept the original landscaper. He doesn't send out invoices and just gets paid by zelle. How do I write that off at the end of the year, if i have no invoices?
REALLY!!! show your accountant your payment to them.
Quote from @Bob Stevens:
REALLY!!! show your accountant your payment to them.
what happens if i decide to pay cash?
For materials and/or services for any of my investment properties where the contractor/person does not give me a receipt, I do one of two things:
1). I choose to jot-it down on a notebook where I keep track of my expenses. I then turn over this expense notebook to my CPA so that he can use it to offset my taxes.
2). I-if it's "big expense", I get ahead of this issue by whipping out a receipt book (you can buy one at any store like Target, Wal-Mart, Staples, Office Depot, etc) and jot down the work that was performed, materials, hours, amount of people, other expenses, etc. In short, I write down the total amount that was paid to perform the project. If possible, I may have the service provider sign-it as a "just in case".
By the way, it was my CPA that provided both ideas to me :)
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If he’s going to get more than $600 in a year you’ll need his social security number because you’re going to have to send him a 1099 so he can pay his taxes. You don’t want to end up owing taxes and penalties.
Quote from @Tom Server:
Quote from @Bob Stevens:
REALLY!!! show your accountant your payment to them.
what happens if i decide to pay cash?
Again, REALLY!!! get a receipt,
Just create an invoice in Quickbooks or whatever accounting software you use and track all of your payments to him there. @Bill Brandt is correct that you'll have to issue a 1099 anyway if it's over $600 and Quickbooks will make this easy. You are the property owner and make the rules. Not keeping records is a good way to blow up your tax strategy.
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