Ladies, do you file taxes?

[Chevalier]

Originally Posted by Naomi4u

.... and what "items" are you referring to and why? That would help better that what you just posted above.
I'm asking David the same thing. You guys are telling me that I'm wrong but what am I wrong about? You're talking all this and not telling them "items" that you are referring to. So tell me what items they are and why they aren't a valid write off. Can you do that?

Some general observations:

1. My comment was generic, not "some of the things Naomi mentioned."
2. I get paid a lot of money for tax advice, but you want me to just give that away? In asking us for free advice, aren't you similar to the guys who ask escorts to meet OTC for free?
3. You're not really going to rely on the advice offered by anonymous strangers on a SJMB, are you?

Without being paid, I'm not going to spend a lot of time to research this. But the primary problem you face is that many items appear to be personal expenses, of the same nature that you would incur (and couldn't deduct) if you were an employee or even retired. The "business versus personal" distinction is critical, and only carefully specified categories of the latter are deductible. So you would have to prove that the item was for business use rather than personal in nature.


Some of the questionable items (many of which have been pointed out above):

• Clothing/lingerie. The standard for deduction is not that you don't wear it for personal use. To deduct it, generally it must be something that couldn't be used for other than work. Lingerie wouldn't qualify, anymore than the suits I wear would, even though I almost never wear suits except for work. (You might choose not to wear racier types of lingerie, but since it's underneath your clothes, it's hard to say that you couldn't.) Webcam business is no exception.
• Makeup. Probably disallowed for the same reasons.
• Food. Everybody has to eat -- why is that a cost of your business rather than personal? Possibly OK if incurred while "away from home" in the conduct of a trade or business. That is generally interpreted as a period substntially longer than an ordinary workday. Food expense while touring might qualify. Maintain records of the business purpose of the trip. Some other possible exceptions: if you're entertaining prospective clients or if you can demonstrate that you incurred higher costs as a result of business requirements. I can't readily even come up with an example of the latter, which is a good sign that the IRS/court likely wouldn't accept it without a great explanation.
• Gas. Only for the part of the expenses attributable to business. So you would need to keep very detailed records (including mileage for each trip) of how you used your car, personal and business. Unless, of course, you only use the car for business.
• Computer, internet service. Are you only using it for business? No personal email? No balancing your checkbook or surfing the Web? If you're only claiming part of the cost, what substantiation do you have of the percentage of business use? Unsupported estimates wouldn't cut it.
• Laundry detergent, bleach, fabric softener. If only used at your incall, e.g., to wash sheets, that might pass the smell test of "business vs. personal." On the other hand, on audit that would point toward a business other than "time and companionship escorting." It's an interesting question. Taxpayers have to report income from, but cannot claim deductions or credits for amounts paint or incurred in, the illegal trafficking in certain drugs. (They can, however, take a deduction for the costs of buying the drugs for resale.) But I don't think there's a broad, general prohibition against deductions in all illegal businesses.
• Home office (rent, heat, electricity, water, apartment repairs - assuming this isn't a totally separate incall). The standard you have to meet is that there is a portion of your home (including apartment that you rent and live in) that is used exclusively on a regular basis for your business. If you mostly use it for business, but occasionally use it for personal reasons (e.g., guest bedroom and you have visitors?), you lose. You can't take a partial deduction based on percentage of use. If you can satisfy that, and can substantiate an appropriate way to apportion expenses, it may pass muster.

Mostly what you see above is the "business versus personal" distinction. The IRS doesn't have to prove that it wasn't used for business; the taxpayer has to prove that it was used for business purposes rather than personal. If you're audited, the IRS is likely to be especially demanding about substantiation. You'll have to convince the auditor that the home office was set aside exclusively and used on a regular basis for the business, and that the clothing/lingerie is of a type that you couldn't wear elsewhere. For other items, you'll have to prove what it was used for. The auditor might take your word for it, but he doesn't have to; you have the burden of proof. And auditors are less likely to take your word when it comes to items that appear (to the auditor) personal in nature. Such as those above.

My bet is that most of the above would be disallowed in an audit. Few people maintain the kind of substantiation they would need (much more than merely receipts.) And a penalty would be assessed against the taxpayer, because the law is pretty clear. You might have a slightly better chance of winning in court, but most judges are not going to be much more lenient about sub-standard substantiation. Are you willing to invest the time and expense of going to court?

Originally Posted by Naomi4u

Now if you tell me the items you are talking about, I bet I can challenge it. So bring it on.

Have at it.

Originally Posted by Eccie Addict

Remember that your name is the only name the IRS will be looking at. No CPA, lawyer or friend will be signing any papers when it comes to the IRS.

One way to check the reliability of advice you receive -- would they be willing to sign the return as the "paid return preparer," and subject themselves to penalties if their advice is wrong.

[Naomi4u]

Originally Posted by Chevalier

Some general observations:[LIST=1][*]My comment was generic, not "some of the things Naomi mentioned."

Cool beans.

[*]I get paid a lot of money for tax advice, but you want me to just give that away? In asking us for free advice, aren't you similar to the guys who ask escorts to meet OTC for free?

Maybe so.

[*]You're not really going to rely on the advice offered by anonymous strangers on a SJMB, are you?

However, you posted a lot of good info. I will talk to my accountant about it and let you know what he says .
Now .. to backup everything I just posted: http://www.icammodel.com/beginner-ca...ile-taxes.html
I never once said that I wrote ALL these things off. Like you, I questioned ALL of them. I said they were tax-deductible. No? Read my post again. Oh no I'll paste it for you....

Exhibit A:

Originally Posted by Naomi4u

I have to disagree with this. I worked as an online/webcam model for 2 years and my lingerie/clothes were tax-deductible.

So was: percentage of rent, heat, electricity, water, internet, apartment repairs, office supplies, computer equipment, makeup, supplements, beauty products, waxing, toys, lubricant, shoes, internet advertising,
cam room decorations. Webcamming (unlike escorting) is a very legal business.

Mind you I still cam on and off. My CPA also informed me that clothes could be written off as an escort.

I also said in my original post that I was preparing my docs .. I haven't filed anything.

Exhibit B:

Originally Posted by Naomi4u

Last year a realtor told me that I would have to have proof that I had been filing taxes for the past five years to buy a house. Well I’m 21; I didn't have such proof so I decided to start filing. Yes I want the beautiful house with the picket fence and lots of kids playing in the yard in a few years so why not? A provider friend came over last night while I was preparing my tax docs and she was shocked to know that I filed taxes. Ladies, do you file taxes? I don’t want to know HOW you do it. I just want to know IF you do it. I’m just curious.

Part 2 of my question: How long do you plan on being in the business? 2, 3, 4 years or forever... ?

The moral of the story today is that we should all learn how to read. I know sometimes it's difficult but reading sometimes saves us from posting something ********.. yeah.. that. .

So now what are we talking about? Please read the article. Maybe you can argue with Alex but every camgirl/adult model/internet model follows Alex's/their CPA's advice. Now, I will admit that I was wrong about checkups. I have already arranged with gulflover for the free bj for saving me from making a stupid mistake but all the others are debatable lol. A good debate makes me horny but this one... hmmm...will go forever.

[NinaBrooke]

Hi Naomi,
I file taxes and intend to always do so. The country where i work (switzerland) does not require me to pay or file taxes as long as i don`t overstay my 90 days a year period. But Austria does.
Switzerland is very strict with controlling of work permits so there is not a chance you can "just" go there and try to work without being registered. If you get caught without a work permit you pay a very very very severe fine, and chances that you get caught are very likely.
Keeps problems at stake. A lot of problems in this buz come from not declaring your income.

[MacTheKnife]

Originally Posted by Dragon7769

What i was told was - if it was something that could reasonably be used outside of work (in the case of lingerie, my argument would be you could also be wearing it for you SO).

Basically it is very hard to claim any form of clothing on your taxes, since very very few things would pass that test.

This is just what I have been told by my CPA. if you have claimed it in the past and it worked out for you then great, I wouldn't stop.

Unlike some others, you have a very smart CPA. I have been surprised at some of the responses from the so-called attorneys on this thread.

I don't know if I agree with your statement "if you have claimed it in the past and it worked out for you then great, I wouldn't stop."

If it's gray, I would. If it's black, I wouldn't.

Ultimately, the taxpayer is responsible for everything on the return he or she is signing. If you don't believe me, read the jurat in fine print that you are signing under penalties of perjury at the bottom of the tax return.

When the IRS comes, you can blame the CPA for any errors on the return. It won't matter. The IRS will be looking solely at the taxpayer who is responsible for everything on and not on the tax return.

If the CPA is grossly negligent in the preparation of the return, sanctions will be imposed by the IRS against the preparer and his or her privilege to practice before the IRS may be revoked. In addition. the harmed taxpayer has recourse through the court system and the state board of public accountancy. Depending on the severity of the negligence, the individual could lose his or her CPA license.

That's the way it works folks.

And with that your Honor,

I rest my case.

[Naomi4u]

Originally Posted by MacTheKnife

Unlike some others, you have a very smart CPA. I have been surprised at some of the responses from the so-called attorneys on this thread.

So it's just not my CPA that's "wrong" . Well Mr.C did make a damn good point about taking legal advice from an SHMB .

[Chevalier]

Originally Posted by Naomi4u

I never once said that I wrote ALL these things off. . . . I also said in my original post that I was preparing my docs .. I haven't filed anything. . . . The moral of the story today is that we should all learn how to read.

?? I never said that you had claimed deductions for those, or that you will be audited and a penalty assessed. My statements were as follows:

Originally Posted by Chevalier

Some of the items mentioned above would almost certainly result in penalties if audited, even though a CPA told you it was OK.

"would" = stating a hypothetical. Particularly since this is an abstract comment not directed at a specific person (I quoted Charles, in fact), I don't see how it would reasonably be interpreted as a belief on my part that you had already filed taxes thus. But some of the people in the thread did mention that they had claimed such deductions on returns they'd already filed, in some instances for years.

Originally Posted by Chevalier

My bet is that most of the above would be disallowed in an audit. Few people maintain the kind of substantiation they would need (much more than merely receipts.) And a penalty would be assessed against the taxpayer, because the law is pretty clear.

Again, a statement in the abstract, not an implication that you had in fact filed a return claiming such deductions.

If you want me to analyze your specific situation, my regular billing rate is $500 per hour and I will need a hefty retainer up front.

------------------

As far as:

Originally Posted by Naomi4u

Please read the article. Maybe you can argue with Alex but every camgirl/adult model/internet model follows Alex's/their CPA's advice. Now, I will admit that I was wrong about checkups. I have already arranged with gulflover for the free bj for saving me from making a stupid mistake but all the others are debatable lol. A good debate makes me horny but this one... hmmm...will go forever.

I did. Most of her assertions are unsupported and at least one facially appears to be out-and-out wrong. Beyond that:

I disagree that all the items other than the checkups are "debatable" in the sense that (from an objective viewpoint) there is a significant chance of winning on audit or in court. I agree that they're "debatable" in the sense that you and Alex can sincerely disagree with my point of view. That's fine. Personally I think my opinion (as a CPA and experienced tax lawyer) should carry more weight in this particular area than your opinion or Alex's. But if you disagree, I don't mind and I'm certainly not interested in trying to convince you to change your mind. I personally don't care whether or not you deduct them, because I'm not signing the return as the preparer and it doesn't affect me. I offered my opinion because you asked for an explanation.

So I doubt if the debate will continue forever, at least with me on one side. I have no reason to continue this further. Maybe some of the others would like to continue to banter with you. Have fun!

[Naomi4u]

So we can't all agree. That is nothing new on this site now is it?

[Chica Chaser]

Closed at OP request