i do wonder why we have decided the trainers are also tax cheats.
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Not sure but I once leased a horse month to month and the cash amount was $50 less than if I paid with a check. 
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Oh, I am not saying there are none. Every profession has tax cheats. It just seemed a reach that reimbursed expenses also implied tax cheating, since in most cases, those expenses would be on the bill and paid along with the board, etc.
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Linny did start that thought with the word ‘IF’
Yes, but why make that connection at all? They are highly unlikely to be paying in cash.
Many vendors and service providers offer a discount for cash, smaller the operation, more likely to see it. Credit cards charge a percentage per transaction fee partly based based on number of transactions processed.
Theres nothing in that to question,
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Hi there. Perhaps I should clarify. I totally understand an additional fee for credit card transactions. This was a lower fee for cash vs a check. This trainer didn’t accept credit cards. Another boarder told me she always paid training fees in cash so they wouldn’t have to record it. So there’s that.
Not implying all trainers do this. But let’s not also pretend it doesn’t happen, because it does.
I’ve also had trainers who’ve employed accountants to manage everything, and that was a great experience as a client. I had itemized statements and could make ACH payments. No carrying cash around in my pockets. No crazy sliding fee schedules. Very by the book.
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I don’t think it’s unique to horse trainers at all. I’ve seen people in all walks of life take expense deductions for expenses that someone else covered.
Let’s not even mention how many horsemen were taught that the way you did accounting was to pay your people under the table. A lot of professionals have never been taught by someone knowledgable and ethical about financials, and may not even know what they don’t know.
Keep your books clean, do the accounting right. You’ll be glad if your worker is injured or if the audits come for you.
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We used to own a small self-employed business. I have seen the tax man at my door. I sat thru an audit on employee subcontractor relationships. If there had been ONE thing odd it would have opened up 3 more years of books. We passed bc I carefully paid attention and detail to 1099’s. He looked at every check written and EVERY cash receipt, all material and labor bills, and contracts.
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Yes, they do, in certain circumstances. For example, payments for medical services, attorneys fees are subject to reporting to corporations. Payments to LLCs, sole proprietorships, which are businesses are subject to reporting. A form 1099 is not issued by individuals not operating as a business.
I saw somewhere upline about $600. All income is taxable unless excludable–regardless of whether a 1099 was received.
