Cash payments to temp contractor for an event

AN_598342 · ‎January 7, 2026

I made several payments of less than $600 each to several contractors for 2 events in NYC: catering and cleaning, photography, music performance, installation/deinstallation, and transportation.

Some payments were made by Zelle, and the rest were paid in cash. 2 of the contractors were in NYC during the events but reside overseas. Would it be a problem to report it as a business expense totaling around $3,200?

I also paid one of the contractors for artwork, valued at $2,160, as requested, rather than monetary compensation.

Bsch4477 · ‎January 7, 2026

You can deduct the expenses paid that are usual and customary for your business. If you have no documentation like a receipt those expenses might be disallowed if audited. If you paid with your own art work you can only claim the cost of your supplies and not your labor. If a valued art work by someone else you would have to have it appraised to establish its value. In addition you are bartering which has its own tax implications.

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Bsch4477 · ‎January 7, 2026

You can deduct the expenses paid that are usual and customary for your business. If you have no documentation like a receipt those expenses might be disallowed if audited. If you paid with your own art work you can only claim the cost of your supplies and not your labor. If a valued art work by someone else you would have to have it appraised to establish its value. In addition you are bartering which has its own tax implications.