LOL I gotta get a picture up soon.
I did want to ask an sp about who to go to but i've only been really at this since July and wasn't keeping track of my income or expenses :frusty:
I have a pretty good idea of what i made but don't want to fudge it
Tax questions for SPs
- Thread starter femanon
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I did want to ask an sp about who to go to but i've only been really at this since July and wasn't keeping track of my income or expenses :frusty:
I have a pretty good idea of what i made but don't want to fudge it
Sorry, I just read this thread again. Didn't know you were a sp. I thought you were just a noisy john. You have good answers here. Just get a good accountant and you'll be ok.
Al's books were cooked. He had two sets. They got him on a net worth assessment I believe (IOW, how can you own so much if you only make so much?)
Yes, that's what I meant by 'personal element', personal use.
Eg. If you operate out of your home and use your single phone line partly for business, you can claim the portion that relates to business. Same with car mileage to prorate between business and personal, your automobile or travel expenses. One new formal dress per annum may not be enough for some with respect to personal clothing. But like musicians, S & M wear or very expensive shoes or a variety of sexy outfits that you might not even wear in public but mostly in your boudoir would all classify as 'costumes' I would think. There are no guidelines that I'm aware of for adult entertainers or sex workers, except for what I've seen for Performing Artists (I have a relative who is a musician and I do his tax return).
http://www.cra-arc.gc.ca/E/pub/tp/it525r-consolid/it525r-consolid-e.html
P.S. You are one of the many smart ones here that know what they are doing.
Tax returns and notices of assessment will assist with financing or establishing credit.I have seen the deduction as a medical expense, hair transplant surgery for someone I know, since it met certain requirements (to treat a medical condition, which might also apply to 'male pattern baldness', eg. from increasing levels of dihydrotestosterone). Not necessarily cosmetic in nature. [I also believe the CRA literature allowed for it, at the time. Saw your post. This could've been pre-2010].
Agree with your comment that there may be a deduction allowed for a business expense, although I'm not aware of any specific examples.
Hypothetically, there must be a correlation between your earnings from escorting or dancing stemming from the appeal of your big, bodacious booty, BUT it must also be for a reasonable cost, assuming it is not otherwise deductible or prohibited.
I suppose anyone can technically do it, as long as they can provide sufficient evidence to stand up to the CRA in case of an audit.
You also have to be willing to fire your accountant if he or she is not working out. I know a few small businesses owners that constantly complain that their accountant is not that great, yet they've been sticking with them for years because they're family friends, used them for years etc. I think in those cases, the accountant is just someone with a designation, but may not a small business specialist.
Many people do their own tax returns with the advent of T1 preparation software that have context-sensitive help and links to CRA guides, including self-diagnostic checklists.
If you get audited, and it's not simply to elaborate or provide receipts to back up your claim or numbers, then that's when you might want to hire a designated accountant.
If anyone is self-employed or has other complications with respect to their personal financial situation, or are simply unsure, go to an accountant as well.
I have helped several SPs file their taxes (and especially back taxes) and if you wish to deduct expenses you need to file an industry code which is: 6564 Other personal service occupations. In addition to escorts this category includes astrologers, masseuses, and dating counsellors.
Be glad we are not the UK...almost impossible to deduct any meals or hotel for business purposes as they generally have the view that you have to eat and sleep somewhere anyway. We are lucky compared to other countries!
The SP would just file as self employment income using form T2125 of the tax return. Filing the return would be beneficial to them to provide for future financing needs if they applied for a mortgage, etc. Also, if they didn't file, CRA would get suspicious when they see someone with minimal income living in a high end neighbourhood at a relatively young age.
Anything over one I claim. I claimed $8k worth of clothing (not lingerie, different category for me) last year. I'm lucky and I go to a lot of formal events, and I wouldn't necessarily buy these dresses on my own. Hence, business expense. Similarly, I'm a student. I wouldn't go buy 10 pairs of high heels every year, and certainly not stockings. So I claim all those. If the CRA questions me on it, I'm happy to show my receipts or accept reassessment.Yes, that's what I meant by 'personal element', personal use.
Eg. If you operate out of your home and use your single phone line partly for business, you can claim the portion that relates to business. Same with car mileage to prorate between business and personal, your automobile or travel expenses. One new formal dress per annum may not be enough for some with respect to personal clothing. But like musicians, S & M wear or very expensive shoes or a variety of sexy outfits that you might not even wear in public but mostly in your boudoir would all classify as 'costumes' I would think. There are no guidelines that I'm aware of for adult entertainers or sex workers, except for what I've seen for Performing Artists (I have a relative who is a musician and I do his tax return).
http://www.cra-arc.gc.ca/E/pub/tp/it525r-consolid/it525r-consolid-e.html
P.S. You are one of the many smart ones here that know what they are doing.
People get receipts for plastic surgery that say only "medical expense" on them, and haven't been called on it. I don't think it's worth the risk, personally, but it happens.
It's active. Also, feel free to PM me for my accountant's information, I have a rolodex of people I've worked with and a longer list of those willing to work with providers.
As long as your consistent.
From Performing Artists Interpretation Bulletin, wardrobe that is of an enduring benefit (can be used again), is a depreciable asset (i.e., not a 100% expense deduction - Class 8 subject to 20% capital cost allowance). Clothes that are not of an enduring benefit can be wholly expensed (i.e, panty hose that rips or won't last in the current tax year?). The cost of hair styling and make-up for public appearances is wholly deductible. Performing Artists
"Medical expense" wouldn't seem to cut it. Although you seem to be aware Becky, other people should know that just because someone gets away with it for years, doesn't mean they're right. One day, their number can come up.
I agree with the above statement. But, let's face it. There will always be those who do not file their taxes.
Your annual tax return, if you do file it, covers tax on your income.
There are dozens of "hidden taxes" and not so hidden taxes that everyone pays that will never ever go away. The government is not as stupid as some people think it is. There are many other ways that they get their hands into our wallets.
Here's a very short list of things that contain "taxes" built in that virtually no one can escape.
Gasoline, cigarettes, alcohol, royalties on resources, driver's licence (any type of permit actually), property taxes, lottery tickets, and of course the GST that you pay on almost everything else that you buy.
Looks like the next place the government will be looking to tap into big time will be marijuana.
So, the income tax cheats are not really escaping taxes completely.
Yes, but income tax is the biggest one that they avoid or try to avoid. Not fair, and the underground economy has the effect of keeping other types of taxes high.
I also agree with your statement above. We seem to be on the same page. It's not fair, but what in life is?
Just trying to point out that just because some one is not paying their income taxes, doesn't mean they aren't paying some taxes in other ways.
I would never advise anyone to not file their tax return. After all, most of the income I have ever earned (paid my income taxes on, and then spent) in my life has come directly or indirectly from people or businesses who were filing tax returns.
