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Old 07-22-2005, 10:56 PM
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Default Outsourcing overseas - tax question

I am asking this question as a follow-up to the post in Site Design about hiring workers in India.

Normally, when I hire contractors in the US, I report the wages paid with a 1099 tax form and can legally write off that amount in my taxes.

Does the same apply for hiring contractors overseas?

Thanks,
Andrew
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Old 07-22-2005, 11:20 PM
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I'm no CPA, but I'd say an expense is an expense when it comes to operational cost of running a business. If you pay the electrician to wire a new 3-phase outlet for your equipment, you get an invoice, you don't issue him a 1099. If you're outsourcing, you're paying them to do work, get an invoice for it and you should be covered. Again, I'm no CPA ... a few minutes at irs.gov or reading through a Schedule C instruction book may better clarify.
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Old 07-25-2005, 12:34 AM
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Default I've some suggestion andrewtcrane

Hi andrewtcrane

Why are you trying to contact your U.S contractor? Then you have to pay them too right? You can directly contact some Indian professional. That much money you are going to save.
If the question is about reliability then you can also make then fool right? (Dont take it other wise).

I would say, contact some Indian professional pay him just 30% of whole amount. After complition of work pay the rest. Your are saving hell lot of money.

Souvik das (India)
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Old 07-30-2005, 10:05 AM
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It is actually a contractor for Argentina whom I already know. The consulting work is marketing/business strategy related, not really computer-related.
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