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Level 2
March 24, 2022
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Independent Contractor

  • March 24, 2022
  • 1 reply
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I'm an independent contractor working as a message therapist.  I receive 50% of my clients service performed bill.  

 

Example: The total cost for a message service performed is $100.  I received 50% or $50 and the owner of the spa receive the remaining 50% or $50.  

 

Can I deduct any portion of the owners 50% as a business expense since I don't pay the spa owner a rental fee to use the facility, only the 50% of my sales.  

 

Thanks.

    Best answer by MinhT1

    No. Because you did not pay it out-of-pocket.

     

    You just report the net amount received as income, i.e. $50 per massage in your example.

    1 reply

    MinhT1Answer
    Level 15
    March 24, 2022

    No. Because you did not pay it out-of-pocket.

     

    You just report the net amount received as income, i.e. $50 per massage in your example.

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