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I have a dog boarding business on my property and have leased

one of my buildings out...
I have a dog boarding business on my property and have leased one of my buildings out to a groomer. Many of my boarding customers have their dog groomed before he goes home and I've run into an issue with the collection of the fees. The groomer finishes her dogs and goes home..leaving us to collect her money when the dog checks out. She has no contact with the customers when they're checking in or when they're checking out.

We do collect a seperate payment for the grooming portion of the fees. I'm concerned that we are doing too much of her work, too much into the middle of her business and that the IRS won't really consider her a real business. More like a subcontractor or independent contractor. I don't want to get stuck with taxes and fines later on because this isn't being handled properly.
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Answered in 1 minute by:
7/3/2011
DanielleCPA
DanielleCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 794
Experience: Years of Experience in Business & Personal Taxes
Verified

DMC :

Hi and welcome to Just Answer! I'm happy to help with your tax questions. Feel free to interject at any time if you need clarification.

DMC :

When you collect the payments from the groomer's customers, are checks payable to her or to you?

Customer:

payable to her

DMC :

If you receive cash, do you pay the cash to her directly or do you deposit it first into your bank account and include that in her check?

Customer:

pay directly to her

Customer:

hello

Customer:

are you still there?

DMC :

I'm still here ...typing out your answer for you.

DMC :

I don't see a problem with your arrangement with the groomer. The distinction between your fees and her fees is clear, as the checks are made payable to her directly and you don't comingle her cash with your own. I do not think it is unusual that she does not interact with the customers simply because the grooming is being done while the dogs are being boarded.

Customer:

OK

Customer:

Is there a way to print this out for my records?

DMC :

Once the live chat is over, our conversation will converted to text under the website address in your address bar. You could then print it out.

Customer:

OK, I think we're probably done

DMC :

Thanks. Please click the green accept button to indicate your question was answered. Have a greaty day!

DanielleCPA
DanielleCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 794
Experience: Years of Experience in Business & Personal Taxes
Verified
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DanielleCPA
DanielleCPA
DanielleCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 794
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Experience: Years of Experience in Business & Personal Taxes

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