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Txpyr
Returning Member

US Entity paying a US citizen (individual) living abroad`

Hi,

 

My US entity is buying a large item ($10k +) from a US citizen (individual) currently residing abroad - wiring the funds directly to the individual. I believe they've been residing abroad for almost 1-year now. The item will be imported and used for business here in the US.

 

1) Do I need to have the individual provide my entity a W9? 

 

2)  If the individual says they are not required to provide a W9 (perhaps they are no longer a US citizen, or perhaps they are acting as a broker between me and the manufacturer), then what other form will I need in order to prove they are not required to provide the W9?

 

3) Lacking any form received from the individual, will my entity be able to expense/depreciate/write-off the the purchased item?

 

Thank you!!

2 Replies
AmeliesUncle
Level 11

US Entity paying a US citizen (individual) living abroad`


@Txpyr wrote:

Hi,

 

My US entity is buying a large item ($10k +) from a US citizen (individual) currently residing abroad - wiring the funds directly to the individual. I believe they've been residing abroad for almost 1-year now. The item will be imported and used for business here in the US.

 

1) Do I need to have the individual provide my entity a W9? 

 

2)  If the individual says they are not required to provide a W9 (perhaps they are no longer a US citizen, or perhaps they are acting as a broker between me and the manufacturer), then what other form will I need in order to prove they are not required to provide the W9?

 

3) Lacking any form received from the individual, will my entity be able to expense/depreciate/write-off the the purchased item?

 

Thank you!!


 

1) No.

2) Nothing.  You are not required to issue a 1099-MISC for purchasing an item.  So no W-9 is needed.

3) Yes.  Just get a receipt and keep proof of payment.

Txpyr
Returning Member

US Entity paying a US citizen (individual) living abroad`

Thanks!

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