Cash Payment to Contractor

[Muks M.]

I will be signing a contract with contractor tomorrow for home repairs prior to renting (hoping I can find tenant by Feb 1). Couple of questions:

1. Is paying by cash a good idea for ~$2000 repairs as the contractor is offering ~6% discount.

2. Can I write off these expenses later if these repairs are performed prior to renting and paid in cash ?

Leaning more in the direction of paying by cheque as this is the first time I am using this contractor (although he seems OK and the saving are just ~$150!) and keeping in mind the tax write off if expenses incurred on the property prior to renting permissible during tax filing ?

[Jeff Pancone]

I never pay cash for services rendered and ALWAYS regardless of cost of repairs ask for an unconditional lien waiver that's been notarized at the completion of the project and upon final payment for services rendered.