View Full Version : paid in cash

03-02-2011, 11:04 AM
I recently started my own business but it's going rather slowly. I do odd jobs for my father and he insists on paying me in cash. My wife and I are in the process of an adoption and need to claim the money as income. I want to do the right thing and pay taxes but my father doesn't want anyone to know he is giving me this money. My question is, can I claim what my father gives me as self employment income without having to implicate him in any way? If so how would I go about this?

Steve B
03-02-2011, 11:13 AM
I don't see the problem. Keep track of the cash you get and report it as income on your books. I don't think there necessarily has to have a name associated with it - but, the chances of an audit these days are pretty close to zero even if your records show the name of your customer.

By the way, congratulations on doing the right thing despite what even your own father wants you to do! I often have people pay me in cash and ask/expect a discount. I've never understood their position. For one thing, I report every dollar I earn - so there is no benefit to me anyway. But, even if I chose to hide money from the gov't. - why in the world would I give them a discount if I'M the one risking being caught and penalized?

J from Michigan
03-02-2011, 04:20 PM
I get that too. Like it matters to me if I deposit cash vs. a check. :rolleyes:

The only time I see cash should get a discount, is if it's in lieu of financing/extending credit.

03-02-2011, 10:58 PM
Cash or check doesn't matter -- it'd all be income.

Do you think that all the sales the local convenience store makes in cash isn't income?

03-03-2011, 02:30 AM
Hi Elijah, congratulations on reporting all your income. And good luck with the adoption. Me and my two sisters and brother were adopted.

Harold Mansfield
03-04-2011, 04:32 PM
You are a good man. After years of making mostly cash as a Bartender and Limo driver, it's tough for me to remember not to just pocket any cash payments. I normally only get them from local clients anyway and up until now those have been mostly escort services that are used to dealing in all cash.

J from Michigan
03-06-2011, 10:04 AM
Bartenders, servers, valets are good examples of people who just instinctively 'pocket' the cash and move on. Because that's all it is... cash.

As an owner, it's information. We are always looking through a microscope at our business performance. So it's more important to see the actual results of our efforts, than to save a couple bucks on taxes. IMO :)

03-14-2011, 03:50 PM
Question here regarding cash sales of services rendered...... A friend whom I just found out owns his own business, recently told me that as long as the sale or service if paid in cash is under $1,000... the IRS isn't bothered with a paper trail.

can someone put some truth to that?

Business Attorney
03-14-2011, 07:32 PM
Whether or not you are paid in cash, the IRS expects you to maintain adequate records. Period.