I have a partner in California and I own an IT Company outside USA with license to export.
I'm planning a scenario where I export software we've developed and my partner import it into usa and resell in local and global market.
My question is about if my partner in USA can consider the cost of my invoice as a deductible business expense or if will pay taxes for the whole sale price.
A little sample:
Cost price: $ 100.00 -> (my invoice) Sale price: $ 250.00 Profit: $150.00
Did my partner pay taxes only for the profit ($150) or would be taxed for the whole sale price ($250)?
Sorry for my litle bad english... and thanks for your help ;).