Shaelene’s Tax Tip of the Week – January 9th

Are you a contractor?
Please do not pay sub-contractors in cash if you cannot provide them with a receipt – otherwise known as an under-the-table transaction. This goes the same for the person purchasing the contract. The risk simply isn’t worth it. This may seem like an obvious tip, but you would be surprised just how many people are unaware of the tax implications of these sorts of decisions. You cannot ever qualify for a deduction for an expense you have incurred if you cannot provide a receipt. If the contract costs $20,000 in expenses, the person who paid it will be on the hook for all $20,000.