Deductibility of payments to outside labor and workers overeseas

I have been traveling overseas for many years. Last year I was able to hire someone in Costa Rica who was able to do some work for my office. I am thinking of using this person for more work. The person in a non u.s. citizen/resident and is working from his home in Costa Rica. I am worried about the deductibility of his payments, withholdings and the required forms for me to file . It worked so well for me last year that I am thinking of giving him much more work. My office has no income from Costa Rica.

I don't know if it is important but last year the person in Costa Rica did accounting work for me. I was able to fax and email receipts, vouchers and forms and I was able to work with him hand in hand by remote computer and voip phone. I ended up buying a high speed scanner to make things flow smoother. I used logmein.com and he was able to enter information directly into my computer here in the U.S.

Can anyone shed some light on this topic? Thanks in advance

Reply to
enduranceal
Loading thread data ...

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.