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Tom Server
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Write off, no invoice?

Tom Server
Posted Apr 19 2024, 09:38

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? 

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Bob Stevens
Pro Member
  • Real Estate Consultant
  • Cleveland
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Bob Stevens
Pro Member
  • Real Estate Consultant
  • Cleveland
Replied Apr 19 2024, 09:39

REALLY!!! show your accountant your payment to them. 

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Tom Server
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Tom Server
Replied Apr 19 2024, 10:21
Quote from @Bob Stevens:

REALLY!!! show your accountant your payment to them. 


 what happens if i decide to pay cash?

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Manny Vasquez
  • Real Estate Agent
  • Orange County
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Manny Vasquez
  • Real Estate Agent
  • Orange County
Replied Apr 19 2024, 10:33

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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Replied Apr 19 2024, 11:40

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.

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Bob Stevens
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  • Real Estate Consultant
  • Cleveland
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Bob Stevens
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  • Real Estate Consultant
  • Cleveland
Replied Apr 19 2024, 12:52
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, 


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Josh St Laurent
Tax & Financial Services
  • Financial Advisor
  • South Lake Tahoe, CA
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Josh St Laurent
Tax & Financial Services
  • Financial Advisor
  • South Lake Tahoe, CA
Replied Apr 19 2024, 13:54

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.