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Updated almost 5 years ago, 02/10/2020

User Stats

68
Posts
9
Votes
Mike M.
  • Denver CO
9
Votes |
68
Posts

How to deduct labor expense with no EIN?

Mike M.
  • Denver CO
Posted

So the majority of all of the contractors or people I hire to help at my rental I pay in cash because they don’t accept credit card or check and they don’t have an EIN. Another example is cleaning ladies and or painters.

Can I still deduct their labor cost on my taxes? I’ve recently started making them create receipts for me, but when reading IRS tax code it appears that if they don’t have an EIN I’m apparently out of luck

Can someone please opine on how they handle this?

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