Quote:
Originally Posted by jbage007
I don't understand the withholding of 30% for tax, unless you're an employer, in which case you're expected to forward the tax yourself to the IRS.
The more correct method is to insist on tax forms, yes, but only for the purpose of issuing 1099's to each payee. 100% of funds that are 1099's are fully deductible by the payor.
Simple stuff. Don't understand the needless complication.
In any event, glgl
I have been told by my accountant that this is the best way to do it. That i need to get w9's/w8-BEN's from them first, then i should pay them the rest. Also that i need those forms so i may fill out the 1099's and not be held liable for the winnings. I dont want to pay 30% taxes on 50k in cashes when i got 0 of it.
Also AFAIK most of the major horses do it like this, it was the general rule last yr, and a lot of packages do it this year.
If you know of a better way to do it that makes it easier on myself and on the buyers, that would be greatly appreciated.
Thanks for the well wishes!