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tax question about outsourcing a cpa account

Discussion in 'Affiliate Programs' started by jd2898854, Mar 11, 2010.

  1. jd2898854

    jd2898854 Newbie

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    I had hired a freelancer to use one of my cpa accounts that I wasn't using. I agreed to give him 70% of the earnings but I just though of some tax problems before he starts. If I give him 70% of my earnings do I still have to claim 100% of the income on my taxes? If so I don't see how anyone can ever make money outsourcing like this. After a 20%+ tax rate there will be nothing left for me.

    Oh and still looking for more freelancers for this too ;)
     
  2. bmac

    bmac BANNED BANNED Premium Member

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    No, you would just need to keep account of the money you paid to him and that 20% would be your net profit which is what you are taxed on.

    That is no different than the big G giving you part of the money they make via adzense.
     
  3. jd2898854

    jd2898854 Newbie

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    Thanks. What type of records would I need and do you think it matters if the person is not in the us? Maybe something as simple as papal receipts. I guess I would claim this as a business expense..
     
  4. Infiniti

    Infiniti Newbie

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    The CPA account is under your name, or tax id #, so you will need to claim the entire amount on your taxes. However, the 70% you pay the freelancer is an expense meaning you will only pay taxes on the remaining 30%.

    How you go about the whole thing is a different story. The freelancer is basically an independent contractor. The CPA network payments should go to an account under your sole control so you can pay this person accordingly. You may also consider having this person fill out a W-2 so you can file a 1099 for him.