Tax questions for SPs

[Occasionally]

An obvious answer to the thread is that:

A) Many don't file taxes
B) Those that do, I bet all my money not one of them files the full amount of money they collect

No different than anyone working a job that involves cash. Some people claim none of it, some people will claim some of it. Zero claim all of it.

 

[Primetime21]

Tax filings do not require job description.

Actually they do if you are filing as a self-employed person. You have to pick an industry code on form T2125 as well as put down the your product or service.

 

[GPIDEAL]

The OP's question is



My response is better reworded to "SP is not a full time job".
To my knowledge there is no such thing as a 'full time SP'. Correct
me if I am wrong, a SP working 40 hours a week does not have to
file her income tax return differently than one working 10 hours
a week. I did not mean to suggest they don't pay taxes in my post or
they could not work a full time non-SP job.

Okay but your original response sounded like you were saying that there aren't any full-time ones and that filing taxes for such was a non-issue.

Whether or not they work 40 hours, there are SPs whose only or major source of income is escorting, and many file tax returns, is all I'm saying.

 

[GPIDEAL]

Actually they do if you are filing as a self-employed person. You have to pick an industry code on form T2125 as well as put down the your product or service.

Correct.

http://www.cra-arc.gc.ca/E/pbg/tf/t2125/t2125-15e.pdf


P.S. BTW, the 2015 T1 now provides a section for a taxpayer to give their email address.

 

[GPIDEAL]

An obvious answer to the thread is that:

A) Many don't file taxes
B) Those that do, I bet all my money not one of them files the full amount of money they collect

No different than anyone working ANY job that involves cash. Some people claim none of it, some people will claim some of it. Zero claim all of it.

A fair statement.

 

[GPIDEAL]

Three things.



1)this guys got it. I'm already in the game I just don't want to get sodomized by the CRA later on and am trying to cover all my bases. nam sayin'?




2) I just found out what an audit was last week so ...not likely.

3) i'm a girl...hence FEManon instead of just anon (I just assumed you guys could tell)

I wanted to find someone to do my freaky taxes so i just inquired here

okay? okay.

Call the SPOC. They may provide leads as to SP-friendly accountants.

 

[james t kirk]

Remember what sent Al Capone to Prison?

That's right, failure to pay income tax.

Yeah, but Al kept books. I highly doubt your average SP keeps books. Cash goes in purse and gets removed from purse at Holt Renfrew

 

[james t kirk]

An obvious answer to the thread is that:

A) Many don't file taxes
B) Those that do, I bet all my money not one of them files the full amount of money they collect

No different than anyone working a job that involves cash. Some people claim none of it, some people will claim some of it. Zero claim all of it.

This is the truth.

There are lots of people who work for cash and don't pay any taxes at all. I don't think that right. You use the hospitals, the education system, roads, sewers, water? You need to pay for it.

 

[Hiding]

B) Those that do, I bet all my money not one of them files the full amount of money they collect

No different than anyone working a job that involves cash. Some people claim none of it, some people will claim some of it. Zero claim all of it.

Not true. It's not always to our advantage to avoid claiming everything that any other self-employed person would claim. It hinders future life investments: mortgages, car loans, credit, etc. Better to have everything fully claimed (with every deductible possible) in order to maximize a high income period in our lives, and to either avoid or easily deal with audits for the future years.

Plus, this:

This is the truth.

There are lots of people who work for cash and don't pay any taxes at all. I don't think that right. You use the hospitals, the education system, roads, sewers, water? You need to pay for it.

Are there short-sighted companions who avoid paying, or underpay? Sure. It's a stupid, scared, "young" thing to do. There are industry friendly accountants, and the vast majority either figure it out with one of them and reconcile (voluntary disclosure of income) OR get caught.

I know for performing artists, you can't claim your regular clothes but stage clothes, although some may try and get away with it.

As for hair and nails, probably not 100% since woman like to look great all the time (i.e., there's a personal element to it). If you get carried away with your business expenses, it may red flag CRA.

The government doesn't normally stipulate what is reasonable, but for meals & entertainment expenses, only half is deductible to a business, while the other half is personal (it used to be 80% deductible, but the government reduced it to 50%, perhaps due to abuse).

I think the rule is "personal use", so I know that plastic surgeries need to be above "housewife" levels, e.g. 800+cc implants. Nails and hair I claim 50%, which is about realistic for what I'd do for myself if I wasn't lucky enough to hang out with some of you. For formal wear, I'll claim anything beyond one new dress a year, which is also reasonable. I'll claim 100% of my incall rent, but none of my personal residence (even though I'm often emailing and Tweeting from there) to balance it out. The point is, be reasonable and fair.

 

[femanon]

thanks!

 

[femanon]

Not true. It's not always to our advantage to avoid claiming everything that any other self-employed person would claim. It hinders future life investments: mortgages, car loans, credit, etc. Better to have everything fully claimed (with every deductible possible) in order to maximize a high income period in our lives, and to either avoid or easily deal with audits for the future years.

Plus, this:


Are there short-sighted companions who avoid paying, or underpay? Sure. It's a stupid, scared, "young" thing to do. There are industry friendly accountants, and the vast majority either figure it out with one of them and reconcile (voluntary disclosure of income) OR get caught.


I think the rule is "personal use", so I know that plastic surgeries need to be above "housewife" levels, e.g. 800+cc implants. Nails and hair I claim 50%, which is about realistic for what I'd do for myself if I wasn't lucky enough to hang out with some of you. For formal wear, I'll claim anything beyond one new dress a year, which is also reasonable. I'll claim 100% of my incall rent, but none of my personal residence (even though I'm often emailing and Tweeting from there) to balance it out. The point is, be reasonable and fair.

so hypothetically if I were to get a new ass in the interest of my work I could claim it as long as it's huge?

 

[femanon]

Call the SPOC. They may provide leads as to SP-friendly accountants.

I checked this site and found the info i was looking for, but it seems a bit abandoned. Any knowledge on whether or not the site is still active?
it looks like it hasn't been updated since last oct

 

[bluecolt]

Honestly, this is none of our business... I only looked in the thread cause Chloe posted something!

Agreed. How people file or don't file is no one's business. I consider threads of this nature to be intrusive and absolutely, positively none of your business.

 

[explorerzip]

Actually they do if you are filing as a self-employed person. You have to pick an industry code on form T2125 as well as put down the your product or service.

You need a professional accountant to fill that form for you since your claimed expenses have to match the industry code. I believe there's over 100,000 or some insane number. It's a big red flag to the CRA if you try to claim expenses that aren't matched to the industry code.

 

[Primetime21]

You need a professional accountant to fill that form for you since your claimed expenses have to match the industry code. I believe there's over 100,000 or some insane number. It's a big red flag to the CRA if you try to claim expenses that aren't matched to the industry code.

It doesn't have to be a professional accountant doing it, i've been preparing tax returns for 23 years and i'm not an accountant. CRA has actually decreased the number of industry codes over the last few years which makes it more difficult in some cases to find an appropriate code.

 

[explorerzip]

Actually cosmetic surgery, unless for medical or reconstructive surgery is no longer deductible since 2010. This is from CRA's site
cosmetic surgery - expenses for purely cosmetic procedures including any related services and other expenses such as travel, incurred after March 4, 2010, cannot be claimed as medical expenses. Both surgical and non-surgical procedures purely aimed at enhancing one's appearance are not eligible. These non-eligible expenses include the following:
liposuction;
hair replacement procedures;
filler injections (for removing wrinkles);
teeth whitening.
An expense, including those identified above, may qualify as a medical expense if it is necessary for medical or reconstructive purposes, such as surgery to address a deformity related to a congenital abnormality, a personal injury resulting from an accident or trauma, or a disfiguring disease.

I'm wondering if a good accountant can claim cosmetic surgery in the case of an actor that goes under the knife to increase their chances of being picked in auditions?

 

[explorerzip]

Yeah, but Al kept books. I highly doubt your average SP keeps books. Cash goes in purse and gets removed from purse at Holt Renfrew

We've already heard from at least 2 ladies that have filed their taxes for many years, which obviously means they (or at least their accountant) are keeping books. Doesn't matter if the cash never reaches a bank account because it is still income.

 

[Primetime21]

I'm wondering if a good accountant can claim cosmetic surgery in the case of an actor that goes under the knife to increase their chances of being picked in auditions?

I should have clarified that cosmetic surgery is no longer deductible as a medical expense. Anyone used to be able to claim things like breast enhancements as a medical expense. I had a few clients claiming those. As a business expense is a different story.

 

[femanon]

Agreed. How people file or don't file is no one's business. I consider threads of this nature to be intrusive and absolutely, positively none of your business.

Well I absolutely, positively needed help and google wasn't cutting it. What would you suggest i'd have done instead? just never file again?

 

[femanon]

It doesn't have to be a professional accountant doing it, i've been preparing tax returns for 23 years and i'm not an accountant. CRA has actually decreased the number of industry codes over the last few years which makes it more difficult in some cases to find an appropriate code.

you're totally right. I just looked it up and they kind of clump them together now and they specify escort/dating in the code...the same code is used for party planners
....do i make a joke about planning a party in somebody's pants now or is that too corny? :rofl: