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    How to write off cash payment
    In our business, I will on occassion hire a friend or family to help with a job. This is usually a one time event, which I will pay them less than $100 cash at the end of the day. Is there a way to write this off as a business expense even though I don't have a receipt for the transaction?


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    This isn't audit-tested, but I write up a receipt for them, and make them sign at the bottom of the receipt indicating that they received a certain amount in US currency from me.

    I include their full legal name, so if the IRS wants to investigate, they know who to talk to.

    It might not hold up in an audit, or it might, but at least it shows effort to comply with the law.


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    Write-off amounts from the total gross sales before the business calculates the sales tax liability.Because these cash discount amounts and write-off amounts are not deducted in the Sales Tax Liability report in Microsoft Office Accounting Express, in Microsoft Office Accounting Professional, or in Microsoft Office Small Business Accounting, you must make an adjustment in the Adjust Sales Tax window when the state allows for these deductions.


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