Hi folks,
This year I started paying for help under the table for larger events - just 1 guy who helps me setup and teardown - I pay him for active time and mileage.
So, I'm totalling everything up for the year for taxes, and something just struck me. In my spreadsheet I use I wanted to record what I was making and what I was paying in fees (rentals, personnel, etc.) since it affected my net proceeds... but how does that work for taxes? Where I usually run into these expenses is when I do larger events, so those events usually send a 1099... so I'm assuming I'm going to have to eat it for 2018... but for the future:
- If I have to rent to augment, and I include that fee in my charge to the customer, how should I go about handling that? Obviously that's taking away from my profit but it doesn't look that way from a 1099 perspective. Should I just add the rental fee as a business expense?
- What should I be doing with my friend that I pay to help me? Do I need to get a W9 from him and keep receipts for my payments to him (I use Venmo for this so that's easy enough to do).
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