He is probably not reporting this work to his GC, who would take a cut, or on his taxes. The latter is technically illegal, since any income over $600 needs to be reported, but that's not your problem.
Post by lavender444 on Jul 24, 2014 12:35:57 GMT -5
It's fine for you to pay cash. The best reason to pay with a card, or check is so you have a paper trail. But if you're getting receipts and you trust him, I would go with the discount. I would assume he's trying to avoid fees, not trying to dodge taxes.
It's fine for you to pay cash. The best reason to pay with a card, or check is so you have a paper trail. But if you're getting receipts and you trust him, I would go with the discount. I would assume he's trying to avoid fees, not trying to dodge taxes.
I always assume cash is to avoid taxes. (Especially when they won't offer a discount for check payment or issue a receipt or lien release.)
Given all the issues you have had with this project I would not pay cash for anything.
He is probably not reporting this work to his GC, who would take a cut, or on his taxes. The latter is technically illegal, since any income over $600 needs to be reported, but that's not your problem.
I wouldn't leap to this. He could simply want to avoid CC fees. It's common for cash discounts on many services.
He is probably not reporting this work to his GC, who would take a cut, or on his taxes. The latter is technically illegal, since any income over $600 needs to be reported, but that's not your problem.
I wouldn't leap to this. He could simply want to avoid CC fees. It's common for cash discounts on many services.
Not when the contractor tells you to bring the cash in a brown paper bag and that you won't get a lien release or receipt, lol. (There's a foundation contractor here that's notorious for that.)
It's fine for you to pay cash. The best reason to pay with a card, or check is so you have a paper trail. But if you're getting receipts and you trust him, I would go with the discount. I would assume he's trying to avoid fees, not trying to dodge taxes.
I always assume cash is to avoid taxes. (Especially when they won't offer a discount for check payment or issue a receipt or lien release.)
Given all the issues you have had with this project I would not pay cash for anything.
I'm generally very untrusting but I give this guy the benefit of the doubt. She said he is a good friend has great referrals and as far as I remember the only they came up was the electrical needing redone and grounded. Unless I missed something else?
And, worse case he does want to avoid taxes, that does not cast a poor light on the clients. That's his issue. I've ran out of checks before and had to pay with cash to the guys who did our patio. I told the contractor I was paying cash, then paid it directly to the workers. There was not any issues.
He is probably not reporting this work to his GC, who would take a cut, or on his taxes. The latter is technically illegal, since any income over $600 needs to be reported, but that's not your problem.
I wouldn't leap to this. He could simply want to avoid CC fees. It's common for cash discounts on many services.
Yeah, but $1000? Unless it's a $30k project, that seems to be way more than the CC fees!
Am I remembering correctly that this was the contractor who didn't start for forever and a day but the contract didn't specifically list a start date so you weren't sure if you could cancel? If I'm remembering the correct story, then I'd be really leery and make SURE you get that receipt with "paid in full" on it and do the old-timey hand the money at the SAME TIME he hands you the receipt so he doesn't pull a quick one.
After 30 yrs of living in CA, my first thought was that the guy is avoiding taxes. My second thought was that he is paying someone under the table and doesn't want a paper trail.
After 30 yrs of living in CA, my first thought was that the guy is avoiding taxes. My second thought was that he is paying someone under the table and doesn't want a paper trail.
Am I remembering correctly that this was the contractor who didn't start for forever and a day but the contract didn't specifically list a start date so you weren't sure if you could cancel? If I'm remembering the correct story, then I'd be really leery and make SURE you get that receipt with "paid in full" on it and do the old-timey hand the money at the SAME TIME he hands you the receipt so he doesn't pull a quick one.
I don't think so, I think she moved on from him and this is a different sub.
Am I remembering correctly that this was the contractor who didn't start for forever and a day but the contract didn't specifically list a start date so you weren't sure if you could cancel? If I'm remembering the correct story, then I'd be really leery and make SURE you get that receipt with "paid in full" on it and do the old-timey hand the money at the SAME TIME he hands you the receipt so he doesn't pull a quick one.
I don't think so, I think she moved on from him and this is a different sub.
No, she's still with the same contractor.
bluesky, I can't help but think that maybe you should do everything exactly by the books, because lord knows you've had issues and continue having issues.
I don't mind paying with a check instead of credit card for big things so the service provider isn't hit with cc fees. But straight up dolla dolla bills? No. It's not illegal, but there's no good (read: non-shady) reason that I can think of for him not to take a check (or a bank check). A check means I have a paper trail, which I want no matter how trustworthy a contractor is.
Re: doing things by the book. Cash discounts are offered by, like, 90% of contractors I've met (at least the independent ones, of course, or subs who don't have iron-clad non-compete clauses).
@bluesky, I think you were asking about your original GC and the fact that he was going to do the electricity without a licensed electrician, but get an owner's permit and have you sign off saying you did the electricity, then told you a licensed electrician would cost more. And I said that it's totally common, IME? Residential building is one of these industries that is SHADY AS HELL on the surface when you look at stuff like this ("I'll scratch your back if you scratch mine."), but I really think that a lot of this not-really-by-the-book stuff is industry standard. Whether or not you like it is up to you - you can, of course, do everything on the up-and-up, though it's not as cheap.
Re: doing things by the book. Cash discounts are offered by, like, 90% of contractors I've met (at least the independent ones, of course, or subs who don't have iron-clad non-compete clauses).
@bluesky, I think you were asking about your original GC and the fact that he was going to do the electricity without a licensed electrician, but get an owner's permit and have you sign off saying you did the electricity, then told you a licensed electrician would cost more. And I said that it's totally common, IME? Residential building is one of these industries that is SHADY AS HELL on the surface when you look at stuff like this ("I'll scratch your back if you scratch mine."), but I really think that a lot of this not-really-by-the-book stuff is industry standard. Whether or not you like it is up to you - you can, of course, do everything on the up-and-up, though it's not as cheap.
After 30 yrs of living in CA, my first thought was that the guy is avoiding taxes. My second thought was that he is paying someone under the table and doesn't want a paper trail.