How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask DanielleCPA Your Own Question
DanielleCPA
DanielleCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 789
Experience:  Years of Experience in Business & Personal Taxes
50747609
Type Your Tax Question Here...
DanielleCPA is online now
A new question is answered every 9 seconds

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

This answer was rated:

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.

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 and 3 other Tax Specialists are ready to help you

Related Tax Questions