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Old 04-18-2017, 04:44 PM
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Question I am intrigued.

I work as a SEO consultant. I have been doing so for several years, however this is the first year my partner has decided to opt out and left everything to me.

all is fine and well, but since I am located in Mexico, and for personal reasons my tax state is on hold or suspended, if you may. Now, as a Mexican tax person, any invoices I issue will be of no use to USA business men and women. So, in this case, I would really like to know, is there any other way they can deduct my services?

I mean, if it were Mexico, I would tell them to increase their consumables amount and deduct the service through that area, as it is not over $4k at the time.

Another idea I would tell them is to get varieties purchases or deduct them as "miscellaneous"...

Is that also doable in the USA?

Mexican TAX laws are quite friendly if you happen to be smart enough to read through the tax law books.



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Old 04-19-2017, 12:29 AM
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I work as a SEO consultant. I have been doing so for several years, however this is the first year my partner has decided to opt out and left everything to me.
all is fine and well, but since I am located in Mexico, and for personal reasons my tax state is on hold or suspended, if you may. Now, as a Mexican tax person, any invoices I issue will be of no use to USA business men and women. So, in this case, I would really like to know, is there any other way they can deduct my services?========>REMEMEBER. Basically as you know, only Ordinary and necessary costs you incur in running your business can be deducted from your income; Biz related expenses generally deductible provided that: the biz expenses were "ordinary and necessary; you kept the records that the IRS requires to support your claims. The IRS is keenly aware that taxpayers may be tempted to write off things as biz expenses that are really nondeductible expenses. Only expenses that are related to carrying on a trade or business are deductible: In addition, these expenses must be ordinary and necessary for your type of business. Finally, the amount paid must be reasonable under the circumstances


I mean, if it were Mexico, I would tell them to increase their consumables amount and deduct the service through that area, as it is not over $4k at the time.

Another idea I would tell them is to get varieties purchases or deduct them as "miscellaneous"...Is that also doable in the USA?=======>As mentioned above; In order to claim a business expense, the expense must relate to your business. If you claim business expense deductions, you will need to have the books and records to substantiate those expenses. The nature of the documentation depends upon the type of expenses, but you need to be able to prove the amount and purpose of each expense..



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Old 04-19-2017, 10:49 PM
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I see. So what you are saying is that, for instance, SEO is part of a marketing strategy, so it would fall in the "advertising and marketing" category. I do ALL my commercial transactions through paypal, so there IS a receipt and something that the client can use to prove that there was a business related expense.

However, for instance and while Mexican tax law is quite friendly, they do force you to have tax deductable receipts for any and all transactions you mean to deduct. Otherwise you can't report them.

Someone told me that it was just the same thing in the USA. That is why I am asking.



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Old 04-20-2017, 04:36 AM
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Quote:
Originally Posted by Mhary View Post
I see. So what you are saying is that, for instance, SEO is part of a marketing strategy, so it would fall in the "advertising and marketing" category. I do ALL my commercial transactions through paypal, so there IS a receipt and something that the client can use to prove that there was a business related expense.

However, for instance and while Mexican tax law is quite friendly, they do force you to have tax deductable receipts for any and all transactions you mean to deduct. Otherwise you can't report them.

Someone told me that it was just the same thing in the USA. That is why I am asking.
I see. So what you are saying is that, for instance, SEO is part of a marketing strategy, so it would fall in the "advertising and marketing" category. I do ALL my commercial transactions through paypal, so there IS a receipt and something that the client can use to prove that there was a business related expense.===>correct; the fact that you have a receipt or can otherwise prove that you incurred an expense does not by itself establish that it is deductible. Only biz related expenses that are ordinary, necessary and reasonable in amount are deductible. You must be able to show the IRS that the expense relates to your business.

However, for instance and while Mexican tax law is quite friendly, they do force you to have tax deductable receipts for any and all transactions you mean to deduct. Otherwise you can't report them. =========>I should say, in general correct; if you are ever audited, you may have to show receipts to prove that yur expenses actually occurred. The IRS allow taxpayers to deduct some expenses without keeping receipts, and the agency allows credit card records and paid bills to serve as proof of expenses. When you file your taxes, you don't have to send receipts to the IRS. But you still need to keep receipts or equally valid documentation of the expense you're claiming. Receipts are often the only proof you have of tax-deductible expenses, especially if you've paid a bill in cash. If you are ever audited by the IRS, you will have to provide these receipts or face penalties and additional payments. Many people choose to take the risk and don't save their receipts, but this can be a costly strategy; In an increasingly electronic world, taxpayers often have alternatives to receipts. Generally speaking, canceled checks, credit card transaction records and bills can be sufficient proof of an expense. Many people have online access to these records. You may also be able to access receipts for purchases made online. Most websites maintain a customer account history, so if you have trouble keeping receipts, consider making business purchases online so you can access these receipts if you need to.



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