Deductibility of payments to outside labor and workers overeseas


E

enduranceal

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
 
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