Tom Talks Taxes - July 30, 2021

Debunking the "no 1099, no deduction" myth

You Can Deduct Payments with No Form 1099

If a taxpayer makes a payment to a worker in the course of his or her trade or business, the taxpayer can deduct the payment provided it is an ordinary and necessary business expense under §162.

Case law defines “ordinary” as one that is customary or usual within the particular trade industry or community and “nec…

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