How claim "day labor" contractors as deduction?

What is the name of your state? CA

I have a real estate investment LLC and at times would like to just hire high-school kids or general day laborers to do yard cleaning, trash-hauling that sort of thing. But since they aren't able to give me a business receipt and usually work for cash, how do I claim this on my taxes since (if I got audited) all I can show for the expense is an ATM cash withdrawal that was used to pay day-laborers??

p.s. No, high-schoolers and day-workers don't want checks.. they want cash at end of the day, so a cancelled check isn't a feasible solution, though it would work for tax reasons.

ok this may sound like a crazy solution..i dont know if it would work, but can you make a check out to yourself for cash and in the memo section write business lawn care or business trash removal just so you would have a record?..it's a long shot but i cant think of anything else other than having a receipt book for them to initial for you to put with your receipts. if it is does not equal $600.00 or more in a year they do not have to pay taxes on it, so it would work for both of you as long as you keep it ot under the six hundred dollars...

If I were to be audited I'm sure they'd just figure I could write myself a "check" for "expenses" any day of the week and toss it out.

I'll see if they'll sign a reciept book, but I prefer to use the same people who are reliable, so chances are they'd make more than the $600/year. Thanks, though.

another way is that if you want you can hire them as independant contracors and 1099 them at the end of the year. That way you are not paying taxes on them working for you and you can claim what you are paying them.

How would I go about "1099" them? Is this an IRS form?? Sounds interesting.

busygirl1274 said:

another way is that if you want you can hire them as independant contracors and 1099 them at the end of the year. That way you are not paying taxes on them working for you and you can claim what you are paying them.

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There are all kinds of "Independent Contractors" for TONS of things. I am a Pampered Chef Independent Contractor - I don't get taxed up front, I have to log business expenses, etc and will claim it all on taxes next year.

So, yes 1099 is an IRS route - -it works for you...... you would have no control over whether or not the person files, but you're covered