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Pay Cash To Not Pay Tax.

 
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Old 04-06-2015, 07:43 PM   #21
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Re: Pay Cash To Not Pay Tax.


As long as its not rolled coins im happy.
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Old 04-06-2015, 08:58 PM   #22
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Re: Pay Cash To Not Pay Tax.


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Originally Posted by cedarboarder View Post
As long as its not rolled coins im happy.
Reminds me. One of my old bosses was a 3rd generation contractor. His dad had built a barn for an old farmer, and at the end the farmer hands him a briefcase with 80k in it to pay the bill.

The old farmer was politely told to write a check.
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Old 04-06-2015, 09:52 PM   #23
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Re: Pay Cash To Not Pay Tax.


Had a guy actually ask if he paid cash for his $900,000 new build if he would get a discount!! Um...no...where am I gonna put that kinda coin?!
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Old 04-06-2015, 09:58 PM   #24
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Re: Pay Cash To Not Pay Tax.


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Originally Posted by overanalyze View Post
Had a guy actually ask if he paid cash for his $900,000 new build if he would get a discount!! Um...no...where am I gonna put that kinda coin?!
sure!!! no problem!!!

Next day what 900,000 are you speaking of??? I have not received any payments
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Old 04-06-2015, 10:01 PM   #25
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Re: Pay Cash To Not Pay Tax.


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Originally Posted by cedarboarder View Post
sure!!! no problem!!!

Next day what 900,000 are you speaking of??? I have not received any payments
not a good move to pull on a guy that has 900k in cash laying around...

and the means to cover it up.....
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Old 04-07-2015, 04:43 AM   #26
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Re: Pay Cash To Not Pay Tax.


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I don't understand cash for you Americans, unless something has changed I was always under the impression that home improvements we're a tax write off since you can pay capital gains when you sell your properties.

I'd also have to say that all in, taxes, obamacare etc etc...I think your paying more the us Canadians...hope the weather is nice!!
Can't write off home improvements and we don't pay capital gains under 500k on a primary residence.
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Old 04-07-2015, 07:15 AM   #27
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Re: Pay Cash To Not Pay Tax.


in ohio there is no sales tax charged for improvements to real property.......

so if a customer proposed paying cash to somehow" save money on taxes"-- what they are really doing is asking me to commit a felony---- but pass the "savings" on to THEM!

so basically at that moment you know you are dealing with a dirtbag---and that the dirtbag thinks you are an idiot.

I will say that I have been paid in cash many MANY times- but since HELOC s became common---maybe 20 years ago???--- not very often. It still happens a few times a year. It's not hard to handle intelligently.
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Old 04-07-2015, 07:28 AM   #28
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Re: Pay Cash To Not Pay Tax.


Like all restaurants deposit all their cash payments and declare as income.

The company line is "good"-but Im willing to bet that that most have received "tips" in their lifetime (maybe not as a contractor) which they did not declare as income.

It is a greater risk nowadays- with computers, databases, cameras, etc. Tax evasion is easier for the "man" to catch. Plus, clients are different too. If they hear a creak in their new wood floor, its off to small claims court. Even if the creaking noise was from their roof.
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Old 04-07-2015, 01:26 PM   #29
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Re: Pay Cash To Not Pay Tax.


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Like all restaurants deposit all their cash payments and declare as income.

The company line is "good"-but Im willing to bet that that most have received "tips" in their lifetime (maybe not as a contractor) which they did not declare as income.

It is a greater risk nowadays- with computers, databases, cameras, etc. Tax evasion is easier for the "man" to catch. Plus, clients are different too. If they hear a creak in their new wood floor, its off to small claims court. Even if the creaking noise was from their roof.
I've heard story's about the client using it against the contractor threatening to call the tax man if he or she doesn't get her way.

so far
1. your not covered on workers comp or insurance
2. your stealing from your own company
3. prison time or massive fines
4. you cant use it for much other than blow and hookers
sounds like a great way to save %5 for some one else

Last edited by cedarboarder; 04-07-2015 at 01:31 PM.
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Old 04-07-2015, 02:33 PM   #30
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Re: Pay Cash To Not Pay Tax.


I occasionally get asked if I give a discount for cash. I explain that getting paid in cash is actually harder on me then a check. I can use the night deposit (or my phone) to deposit a check, whereas I have to go out of my way to the bank, during business hours, and stand in line to make a deposit. Sure, I do the occasional little thing where a client will give me $100 for something real quick and *gasp!* I don't report it.
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Old 04-07-2015, 02:39 PM   #31
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Re: Pay Cash To Not Pay Tax.


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I occasionally get asked if I give a discount for cash. I explain that getting paid in cash is actually harder on me then a check. I can use the night deposit (or my phone) to deposit a check, whereas I have to go out of my way to the bank, during business hours, and stand in line to make a deposit. Sure, I do the occasional little thing where a client will give me $100 for something real quick and *gasp!* I don't report it.
you dont have to report tips

altho i do hate when people round the check up, lets say $2967 then i get a check for $2970. more paper work

Last edited by cedarboarder; 04-07-2015 at 02:41 PM.
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Old 04-07-2015, 03:55 PM   #32
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Re: Pay Cash To Not Pay Tax.


But you do! (over 20 dollars in a month)
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Old 04-07-2015, 04:16 PM   #33
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Re: Pay Cash To Not Pay Tax.


Quote:
Originally Posted by sailfish27 View Post
Can't write off home improvements and we don't pay capital gains under 500k on a primary residence.
That's correct for married couples, 250k if you're single.
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Old 04-08-2015, 02:32 PM   #34
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Re: Pay Cash To Not Pay Tax.


Quote:
Originally Posted by Chris Johnson View Post
I don't understand cash for you Americans, unless something has changed I was always under the impression that home improvements we're a tax write off since you can pay capital gains when you sell your properties.

I'd also have to say that all in, taxes, obamacare etc etc...I think your paying more the us Canadians...hope the weather is nice!!
I did have to turn my space heater on for about 2 weeks, but other than that it's pretty nice!
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Old 04-08-2015, 03:33 PM   #35
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Re: Pay Cash To Not Pay Tax.


here in south dakota, we have a 2% contractor's excise tax. the general or property owner is responsible to collect/pay that.

i have an excise tax license, never a sales tax license because the state didn't consider me a retailer because i didn't have a store front. so any job material i bought, i had to pay the sales tax to my supplier, and "hide" that in my quote, but pay 2% on the gross receipts monthly.

any jobs where i was considered a sub, i had no excise tax liability, just the sales tax i paid to my supplier.
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Old 04-08-2015, 08:14 PM   #36
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Re: Pay Cash To Not Pay Tax.


Don't the canucks have a VAT? (so far) America doesn't.
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Old 04-08-2015, 09:46 PM   #37
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Re: Pay Cash To Not Pay Tax.


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Don't the canucks have a VAT? (so far) America doesn't.

Yes, some provinces are combined like Ontario is and you pay 13% across the board on everything...well 99.9% of everything

Construction (supply and install) we don't charge sales tax but if the province is combined tax you technically do but it's not called a sales tax it's a harmonized sales tax.

The only good thing about it is it is easier to do your books
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Old 04-13-2015, 09:40 PM   #38
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Re: Pay Cash To Not Pay Tax.


Out here in lotus land (BC) they implemented a harmonized tax..
The people revolted (NDP) and it was returned to the GST and PST.
HST was way easier.
Morons thought it would save them money.
It doesn't
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Old 04-13-2015, 10:09 PM   #39
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Re: Pay Cash To Not Pay Tax.


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Originally Posted by B.D.R. View Post
Out here in lotus land (BC) they implemented a harmonized tax..
The people revolted (NDP) and it was returned to the GST and PST.
HST was way easier.
Morons thought it would save them money.
It doesn't
I didn't vote. I didn't mind the HST, just didn't like how they brought it in. I was also a little dumbfounded as to what had HST and what didn't.

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