Originally Posted by
Achilles
We always choose "Goods/Services" rather than the other option "Cash Advance" in order not to get charged extra by AP. How would you explain it on the taxes in the worst case you get a tax bill?
If it is with spouse/family it will be zero sum, no profit. Cost of business is equal to business income. No tax on no profit.
If audited I'd just say it was a spousal game created to show appreciation of the tasks we do for one another, such as laundry- here's $100.
Actually if audited I'd ask my CPA- but any way I wouldn't be paying tax.