Need Advice for JV Tax
- Thread starter dwpg002
- Start date
fun4uoc
Supreme Member
- Dec 25, 2007
- 1,205
- 1,049
I'm sorry, I meant receipt. Yes you should try and get an invoice from him. Paypal records for JV payments I've made in the past have always been more than adequate come tax time but the more documentation you have the better.
Markbh
Regular Member
- Jul 8, 2010
- 224
- 1,111
@jdmeg6
@fun4uoc
Hey, You giys are getting all confused here!
If your partner receives the 100% and pays YOU 50% as an advertising cost, then the following happens -
1. You want to have the money, you ask for it. The way of asking in accounting world is sending an invoice.
2 .You send the invoice to the party who pays you on the basis of this very invoice!
3. Once you receive the money, and in case he insists, you can give him a receipt, though usually this is used for cash transactions only. In case of a wire or PayPal, the account statement shows that it has been debited (taken) from sender's account.
4. For your partner, the invoice he received from you will serve as proof that he did not keep the whole lot, but had expenses, thus reducing his taxable amount.
@fun4uoc
Hey, You giys are getting all confused here!
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sorry i still dont understand who is suppose to give out the invoice? is it me or my partner? my partner receives monies from affiliate company. and he pays 50% for advertising cost, am i suppose to give him invoice or does he give me an invoice?If your partner receives the 100% and pays YOU 50% as an advertising cost, then the following happens -
1. You want to have the money, you ask for it. The way of asking in accounting world is sending an invoice.
2 .You send the invoice to the party who pays you on the basis of this very invoice!
3. Once you receive the money, and in case he insists, you can give him a receipt, though usually this is used for cash transactions only. In case of a wire or PayPal, the account statement shows that it has been debited (taken) from sender's account.
4. For your partner, the invoice he received from you will serve as proof that he did not keep the whole lot, but had expenses, thus reducing his taxable amount.
Markbh
Regular Member
- Jul 8, 2010
- 224
- 1,111
@mjordan
He should ask his tax authorities. In some countries an electronic invoice (=via email) is honoured, and it's sufficient for him to print it out and put it in a file.
Others might require that it's an original, with an original signature and sometimes a seal. In that case you should send it to him via registered mail/courier.
He should ask his tax authorities. In some countries an electronic invoice (=via email) is honoured, and it's sufficient for him to print it out and put it in a file.
Others might require that it's an original, with an original signature and sometimes a seal. In that case you should send it to him via registered mail/courier.
Markbh
Regular Member
- Jul 8, 2010
- 224
- 1,111
The docs that jamman mentions
are good, but do not forget another main component, that usually has to be referred to in the invoice - the CONTRACT.
They come in different formats - from 1 to 300 pages. 1 page might be quite sufficient for you, but to look professional (in the eyes of the taxman too) use a slightly longer one.
That's were you pin down both parties' obligations and it gives one a legal foundation to explain the taxman why he is giving away money from his account to someone else, instead of having it taxed. Especially abroad. You show here how the incoming funds would not materialise, if it wasn't for the services of the opposite party.
I uploaded a good package of typical contract and invoice samples for almost any type of business 3 weeks ago - give you 1489 legal templates - go take a look and download. (And do not let the MFire filename confused you)
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Receipts, cancelled checks, bank statements. Make sure each expense(payment to him) can be tracked in all three ways and you're fine. Keep your records in case you're ever audited.They come in different formats - from 1 to 300 pages. 1 page might be quite sufficient for you, but to look professional (in the eyes of the taxman too) use a slightly longer one.
That's were you pin down both parties' obligations and it gives one a legal foundation to explain the taxman why he is giving away money from his account to someone else, instead of having it taxed. Especially abroad. You show here how the incoming funds would not materialise, if it wasn't for the services of the opposite party.
I uploaded a good package of typical contract and invoice samples for almost any type of business 3 weeks ago - give you 1489 legal templates - go take a look and download. (And do not let the MFire filename confused you)
HTML:
http://www.blackhatworld.com/blackhat-seo/business-tax-advice/244957-document-nearly-any-business-legal-situation.html#post2183726
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Little bump.
So im sharing profits revenue with someone 50/50. But they are out of country and don't pay taxes so don't want to send an invoice. What should I do. I don't wanna get in tax trouble, and definitely don't wanna have to pay taxes on 100% of the money when I'm only getting half of it.
So im sharing profits revenue with someone 50/50. But they are out of country and don't pay taxes so don't want to send an invoice. What should I do. I don't wanna get in tax trouble, and definitely don't wanna have to pay taxes on 100% of the money when I'm only getting half of it.