Taxes

Some gentlemen have asked me about how I deal with paying taxes (yes, I pay), and providers have asked me for advice as well. I think for both, this article makes for interesting reading.

http://www.slate.com/id/2229094/

Having the accounting background, I agree that the penalty for non-filing/tax evasion penalty is stiffer (no pun intended) than the other penalties we've discussed in other threads.

Being self-employed allows you to write off other "business related" expenses as long as you're prudent about how its done. I'll be happy to discuss it one on one and assist with the tax filing. Tax strategies are best not aired in the public forum. Any and all PM me if you have any questions.

Imagine turning in itemized receipts for work related expenses:
Many different kinds of condoms, lubes, oils, oh and of course the "toys."
Maybe this is one area where you take the loss.

Imagine turning in itemized receipts for work related expenses:
Many different kinds of condoms, lubes, oils, oh and of course the "toys."
Maybe this is one area where you take the loss. Originally Posted by trubrit

I've been writing dildos and the like off for years not to mention panties, lingerie, clothes...I'm a self employed entertainer! All above board!! Kisses Randi

I've been writing dildos and the like off for years not to mention panties, lingerie, clothes...I'm a self employed entertainer! All above board!! Kisses Randi Originally Posted by Randi

Just to clarify.....

IRS Publication 529

http://www.irs.gov/publications/p529/ar02.html

Work Clothes and Uniforms

You can deduct the cost and upkeep of work clothes if the following two requirements are met.

You must wear them as a condition of your employment.

The clothes are not suitable for everyday wear.

It is not enough that you wear distinctive clothing. The clothing must be specifically required by your employer. Nor is it enough that you do not, in fact, wear your work clothes away from work. The clothing must not be suitable for taking the place of your regular clothing.

Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc.).

Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear.

However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible.

Yep! Not everyday wear...costume/club type,
thnx Mac

Just to clarify.....

IRS Publication 529

http://www.irs.gov/publications/p529/ar02.html

Work Clothes and Uniforms

You can deduct the cost and upkeep of work clothes if the following two requirements are met.

You must wear them as a condition of your employment.

The clothes are not suitable for everyday wear.

It is not enough that you wear distinctive clothing. The clothing must be specifically required by your employer. Nor is it enough that you do not, in fact, wear your work clothes away from work. The clothing must not be suitable for taking the place of your regular clothing.

Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc.).

Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear.

However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible. Originally Posted by Mac92451

Yep! Not everyday wear...costume/club type,
thnx Mac Originally Posted by Randi

That poses an interesting question. Since club wear costumes could be used by "civilians" to spice up their ordinary sex life, I wouldn't be surprised if the IRS might deny that one in an audit, claiming that such costumes are suitable for "everyday" wear (though not "out in public" kinda wear).

Damn, that's the kinda tax law that might have enticed me into that specialty, but for the fact that practicing tax law makes you bald and fat and causes you to drink Scotch and vote Rethugnican. No way am I ever going to stoop that low.



Cheers,

bcg (ok, I'm fat and I do occasionally drink Scotch, but I still have all my hair and I'll die before I vote Rethugnican)

Damn, that's the kinda tax law that might have enticed me into that specialty Originally Posted by bluffcityguy

Keep in mind, that which is cited is NOT tax law. IRS publications are not tax law and can not be relied upon to justify a position taken on a tax return. Only the Internal Revenue Code (1986) and the regulations issued by the Congress and IRS are considered "tax law." Tax law created by "case law" is a whole nother matter. It can prove to be very confusing at times, but rewarding to those you like change that occurs DAILY.

When your "business" is reported on a Schedule C, normal and ordinary business expenses can be deducted wheter as an entertainer, meeting arranger, personal concierge, etc. Unless your number is "up" for an audit and you make that 1/2 percent or so annually, those items are not usually examined unless income and expense fall outside of the norm. Just be sure you can adequately document it.

Keep in mind, that which is cited is NOT tax law. IRS publications are not tax law and can not be relied upon to justify a position taken on a tax return. Only the Internal Revenue Code (1986) and the regulations issued by the Congress and IRS are considered "tax law." Tax law created by "case law" is a whole nother matter. It can prove to be very confusing at times, but rewarding to those you like change that occurs DAILY. Originally Posted by Mac92451

By "tax law" I'm thinking more of things like my hypothetical question ("Would a dancer's 'club clothes' be considered 'suitable for everyday wear' and therefore non-deductible because they could be worn by non-dancers as an adjunct to a healthy sexual relationship?"), counseling an "adult entertainer" on such an issue, the research of possible case law bearing on that issue, and the possibility of litigation of such questions either in the US Tax Court or Federal District Court, which I think counts as "the practice of tax law". I'm well aware that IRS pubs aren't "tax law", though the cite you made did raise a few tax law related questions in my mind.

I'm going to stop now before I start losing my hair, gaining more weight, start thinking seriously about pouring my Redbreast Irish down the sink and buying Scotch to replace it, and start thinking that I should have voted McCain/Palin in '08...



Cheers,

bcg

I say F*ck uncle sam

i mean might as well..i have f*cked everyone else

joking, paying taxes is a good thing..really it is

being able to document is a good thing, don't get greedy and things should be good

Who's the guy who wrote off 100K? lmfao - you go boy!

If you notice most netorious gangsters and prostitutes were convicted of tax evasion not of being a gangster or prostitute. Also since I was a tax advisor for the last few years with the VITA program you should note if you get audited the IRS has the burden of proving your income while you have the burden of proving deductions. So if they can not prove income such as cash to cash transactions (not cash to bank) than they have no leg to stand on. That being said theoreticly by law if you find $20 on the ground you are suppost to report it as income but they must prove that you found it LOL.

I quess we have my home country to thank for all this tax crap. Just imagin, if you lot hadn't thrown the tea into the Boston Harbour, you would all be talking like me and playing "football" not soccer!!

I quess we have my home country to thank for all this tax crap. Just imagin, if you lot hadn't thrown the tea into the Boston Harbour, you would all be talking like me and playing "football" not soccer!! Originally Posted by trubrit

And even worse, cricket vice baseball.

If you guys think that the balk rule is incomprehensible, be glad you don't have to deal with the LBW law.

Cheers,

bcg (not to mention terminology like "googly" )