Where do full time escorts put their money?

[Soccersweeper]

The new issue isn't because of CRA. Banks are now screening large deposits to prevent human trafficking and will block deposits or freeze accounts if they suspect it. Buying visa gift cards with cash at Shoppers, etc may be the way to go to use money to buy things day to day that require credit cards. I wouldnt be surprised if this drives escorts to ask for e-transfers even more

 

[LTO_3]

Some people make large sums in their profession and if the company has direct deposit then it goes in without question unless the sum exceeds 10K. Same for individuals who may get paid in large sums such as carpenters, electricians, etc. An SP, like anyone else can make deposits and it shouldn't raise questions. Or the SP could set up 2 or 3 accounts at different banks. I've known a few non-SPs that have done that without any issues.

LTO_3

 

[hockeyguy19]

I am pretty sure that CRA does have a category for 'adult entertainers' and these workers can deposit cash into their banks and as long as it is reported, shouldn't be a problem. At the end of the day, the CRA wants their share so it is in the best interest of these workers to treat this as a regular job with regular income. The right accountant, with whom these workers are open and honest with, will do it right for them and ensure that it is all done properly.

At the end of the day, if they decide to buy property, for example, they will need to show a good income to qualify for a mortgage and it would need to be done through NOA's, etc. And there are mortgage brokers out there who specialize in those that make cash income and they will coach them as to how much to claim , etc.

 

[tastingyou]

I am pretty sure that CRA does have a category for 'adult entertainers' and these workers can deposit cash into their banks and as long as it is reported, shouldn't be a problem. At the end of the day, the CRA wants their share so it is in the best interest of these workers to treat this as a regular job with regular income. The right accountant, with whom these workers are open and honest with, will do it right for them and ensure that it is all done properly.

At the end of the day, if they decide to buy property, for example, they will need to show a good income to qualify for a mortgage and it would need to be done through NOA's, etc. And there are mortgage brokers out there who specialize in those that make cash income and they will coach them as to how much to claim , etc.

If you are pimped , are a druggie, if your service is lousy and you have few repeats, if you do not enjoy the business , if you lose your money at the casino and live week to week why worry about it - You will not last in the business and if you do you will never have any money anyways - so why show income. Even if you are caught by the CRA for hiding income [ unlikely ] there is nothing for them to take since you probably have nothing to take .


You are in a cash business and you can probably get away with hiding that cash and not filing tax returns and showing no income. BUT if you are a successful provider and are accumulating significant amounts of cash you are a TOTAL IDIOT if you are not showing the CRA at least some of that income. If you show net income after expenses of about $40,000 you will pay next to no income taxes. And you do have lots of legitimate expenses to decrease your total income. If you are showing net income of above $40k you will have to pay some tax but you can also have an RRSP and TFSA. You can deposit money in the bank without fear and you can open investment accounts and buy property all without constant fear of being audited and having your bank accounts frozen if you are showing somewhat realistic income. . You can stop hiding all of your money under the mattress. And the government loves to give money away in various forms like climate incentives, food cost rebates, CPP etc. but you have to be in the tax system to take advantage. In the long run you will get back more than you will pay.

 

[oreocook11]

Source? Reference? I'm curious how you got to this (so far) opinion.

Just pick your favorite escort on any of the agency website and assume they're fully booked back to back every shift (they are not). Then multiply their rate (after agency cut) and you'll see they don't make much. Max $60k a year

For the SP I like (she's VIP rate, many aren't VIP), she gets about about 35 men per month with 2 shifts every week (except mother nature week). That's probably $4900 a month or $59k/yr after being with 400+ dudes. $59k/yr isn't much money and 400+ dudes isn't sustainable. She's pulling 5 guys a shift which is crazy too. You think they can be with more? They get sore and will lose energy. Those are higher estimates. I think median Escort probably $20k a year.

So no, Escorts don't get rich off of this. Famous pornstars yes. Agencies, yes.

 

[hockeyguy19]

If you are pimped , are a druggie, if your service is lousy and you have few repeats, if you do not enjoy the business , if you lose your money at the casino and live week to week why worry about it - You will not last in the business and if you do you will never have any money anyways - so why show income.

You are in a cash business and you can probably get away with hiding that cash and not filing tax returns and showing no income. BUT if you are a successful provider and are accumumulating significant amounts of cash you are a TOTAL IDIOT if you are not showing the CRA at least some of that income. If you show net income after expenses of about $40,000 you will pay next to no income taxes. And you do have lots of legitimate expenses to decrease your total income. If you are showing net income of above $40k you will have to pay some tax but you can also have an RRSP and TFSA. You can deposit money in the bank without fear and you can open investment accounts and buy property all without fear of being audited and having your bank accounts frozen if you are showing somewhat realistic income. . You can stop hiding your money under the mattress. And the government loves to give money away in various forms like climate incentives, food cost rebates, CPP etc. but you have to be in the tax system to take advantage. In the long run you will get back more than you will pay.

That is absolutely correct. Just report the income and you'll have no problems. You don't have to report the entire amount but just make it realistic and enough so that you can use your reporting to help with something like a mortgage later on.

It is tempting to not deposit the cash and just spend it but that does nothing for your future and, although great now, will lead to huge problems later on in life.

 

[Scholar]

Just pick your favorite escort on any of the agency website and assume they're fully booked back to back every shift (they are not). Then multiply their rate (after agency cut) and you'll see they don't make much. Max $60k a year

For the SP I like (she's VIP rate, many aren't VIP), she gets about about 35 men per month with 2 shifts every week (except mother nature week). That's probably $4900 a month or $59k/yr after being with 400+ dudes. $59k/yr isn't much money and 400+ dudes isn't sustainable. She's pulling 5 guys a shift which is crazy too. You think they can be with more? They get sore and will lose energy. Those are higher estimates. I think median Escort probably $20k a year.

So no, Escorts don't get rich off of this. Famous pornstars yes. Agencies, yes.

I'm not going to bother doing the math to refute what you are claiming. That said, you are basically saying that she only works 80 days per year for about $60k. Does that sound like a bad deal?

To put it in perspective, anyone else working a full time job has to work 260 days a year, minus the 13 stat holidays and whatever vacation time they are paid for at work. If you don't have paid time off, it is 2 weeks paid as 4% vacation pay on your paycheque. So, using the 2 week minimum, we are talking about 237 working days per year. So the theoretical escort in your scenario is only working 1/3 of everyone else with a full time job.

Maybe it's not 'rich', but it's a hell of a lot better than the average person. Also, I lied. I did do the math. And your figures would have your so called VIP rate girl only at $250 per hour. I'm using an assumption I have heard that the agency takes 40%. As most VIP girls are a lot closer to $300+ per hour, your basic math is wrong.

But if I've overlooked or misstated something, please correct me. Or, as my math teacher used to complain about all the time, show your work to prove your point.

 

[John_Jacob]

Just pick your favorite escort on any of the agency website and assume they're fully booked back to back every shift (they are not). Then multiply their rate (after agency cut) and you'll see they don't make much. Max $60k a year

For the SP I like (she's VIP rate, many aren't VIP), she gets about about 35 men per month with 2 shifts every week (except mother nature week). That's probably $4900 a month or $59k/yr after being with 400+ dudes. $59k/yr isn't much money and 400+ dudes isn't sustainable. She's pulling 5 guys a shift which is crazy too. You think they can be with more? They get sore and will lose energy. Those are higher estimates. I think median Escort probably $20k a year.

So no, Escorts don't get rich off of this. Famous pornstars yes. Agencies, yes.

Say, 3 guys a day for a total of 3 hours (could be 6 x 1/2 hour etc..), 3 days a week on average. Say independent, $300 per hour. So, $2700 per week. Say 40 weeks. $2700 x 40 = $108,000. Not bad $ when the average Canadian salary is ~$55K per years. We can vary the numbers all you want (hours, $/hour etc..) but the bottom line is for the hours worked, the money is pretty good. Enough to set up a retirement fund after 20 years (age 30 - 50).

I did the math for one of my favorite MPs. She works 6 hour shifts, 3.25 days per week. She is BOOKED so lets call it 5 hours worked. Likely with tips, $200 per hour but lets call it $160 per hour which is the standard rate there. She works 48 weeks per year but lets call is 46 weeks, what the hell.

So, 5 hours/day x $160 per hour x 3.25 days per week x 46 weeks = ~120K per years. So, $100K to $130K per year working 3.25 days per week. NOT rich but quite a lot better than the average person. The regular MPs would make $60K to $80K for 3.25 days per week. NOT bad.

I don't think your assessment is correct. Money looks good if you have the aptitude for it.

 

[Soccersweeper]

Again, it's no longer a CRA issue. It's a trafficking issue which doesn't involve CRA. This is the banks being made to screen large cash deposits to female names on personal accounts,, etc which is not the same profile as business accounts like construction, etc. except in the unlikely event an escort is running a business account. In which case frequent large cash deposits to personal accounts are red flags. At the moment Canadian banks don't really share suspicious info with each other like other G7 countries so having an account at each bank can help for now, but this may change.

 

[Erosboy]

Funny reading this thread. All us guys are just so fucking smart and know everything.

 

[Mr Deeds]

A lot of high-end escorts do a lot of traveling they can put their money in any Bank in the world and never have to report it. Since escorting is legal in Canada they can just simply put a certain amount in the bank and reported this income no issues. I also suspect that some of the high-end clients they are seeing would be in the know on how to Shield income

 

[LC18]

A lot of speculation. Interesting thread

 

[oreocook11]

Maybe it's not 'rich', but it's a hell of a lot better than the average person.

You're right, escorting is a great deal, quick fast money vs average person. But this Quick/fast money is not a lot of Total Money. That's why the average SP doesn't have to worry about taxes because they fall under low income category. Like I said, the median is probably $25k a year. For top star probably $60k. You think an SP gets consistent interest all year round? No. New Escorts make fast bang, called "new girl rush" by agencies. Fully booked first 2 weeks if attractive. Then once all the guys have seen her a few times, the interest drops Week No 3 and they're getting fewer and fewer bookings, even if willing to work more and more. But realistically, what living creature wants to be with 400+ guys per year so it's not realistic past the first, maybe 2 years. That's more than 1 new human per day. Do you know how that fucks up your brain? I meet about 2-5 women a year but in my peak 2015, I been with 90 woman in one year and that fucked with my head. So imagine 400+. Not realistic. That's why many have other jobs as well. The one SP I like is trying to be a dental hygienist. Why would she train for such a low paying job if Escorting was sustainable. Dental Hygienist is slow money but More Total Money. Oh and she's 9/10 hot 24 yo. She survived 3 weeks. Her 26yo friend still works at an incall agency and that's where I picked up the math. Not more than 5 clients per shift.

Who's getting rich? Agencies. It's about scale.

 

[Y_Diner]

One sp told me once that things are not as they were a few years ago. Covid killed a lot.
Also new and younger girls on the scene constantly. She told me after the agency takes their cut, on a bad day she’ll take home $200 after a whole day 8-10 hours. Not busy as it used to be.
She heard from some other sps their take home is
About the same some days more or less.
She’s a reg and I felt for for her and tipped her 100 more.

 

[massman]

Lol. Another thread about how escorts operate. >30 posts from guys, many of whom seem to know exactly what an escort’s finances are like and one from an actual escort addressing part of the question.

 

[glamphotographer]

They are smarter than you think, put the money in the laundry and the money is clean to the CRA.

 

[NotADcotor]

Nice try CRA

It's like when people who ask about extras and the nudie bar get called officer.

They know what's going on, one would think it's like, their job or something.

1: Considering it's legal, one can always report the money and pay the taxes.
2: I have read somewhere that the rules are similar to crossing the border, Anything over 10K needs to be reported, but if you have a legit source for the money, you cool. Give your bank manager a beej and your golden. I have also read that if you constantly deposit smaller amounts you can get in trouble from trying to skirt the 10 limit but I am not a lawyer nor have I ever played one on TV, nor have I ever stayed at a Best Western Express, so take it for what it is.
2: Lets assume 300 a day 6 times a day, that's under 2K. Minus various expenses some of which can be paid by cash, and non work expenses that can be paid by cash and you are below the limit. Now granted if you end up with 100K over time in your account, some questions might be asked, or not, daily deposits are not weird, but eventually the tax man might be asking why you no pay taxes. OTOH loads of courpt government officials and cops seem to get away with unexplained income [you bought that house on a cop salary, hey I have good friends]

Yeah, I wouldn't be concerned about the CRA asking questions on terb, they know how money is laundered. I'd be more concerned with someone trying to figure out if it's viable to go on a robbing spree.

 

[Doctor Zoidburg]

It is a business like any other. There are dumb girls that spend like crazy or hit the booze and drugs. I know one girl that never cooked and ate out every meal, she added 40 kg. to her 50 kg. body. I knew a girl in her early 20s that still lived with her family,
she was good looking and had a lot of clients but never hung on to any of her money. She drove a Lexus that she treated badly and bashed and banged up often. She told me her mom cuts her hair, it may be because she does not have the extra cash to spend in a salon or she is fooling her mom that she works at a fitness gym and gets minimum wage. ( Hey Mom, your daughter drives a Lexus )
There are smart ones that get what they need and get an education and never look back.

 

[Robert Mugabe]

Where do I go to spend my dollar? It's a crying shame but no one's to blame but me.

 

[Ponderling]

I think you misunderstood, having large sums of cash can be nerve-wracking and not always easy to dispose of. Especially now when cash is rarely used. I go months with cash in my wallet.

I go to in person auctions, flea markets, and garage sales, and cash is always welcome, and sometimes a must.

Maybe not as common as it once was, but I have no problem paying in cash for:
Some or all of the weekly groceries.
Beer store and liquor store transactions.
Fill the car at the gas pumps and pay with cash.
For sure pay for home cleaning.

Likely welcome at barbers and hair salons, nail spas, etc.
Independent auto service and CTC are happy to take cash for car maintenance expenses.

When too much cash piled up in my household for my liking after a few very good months of beer can returns from a rec league arena operation, I used it to pay my CTC Mastercard account.
Go to the customer service desk of any CTC.
Hand over your card and the cash. In my case $2000 on month, $1500 another month.
Clerk will have to get manager to be the second person to verify the cash count.
You get a receipt and balance updates in less than a day.

And of course at the strip club VIP is always a cash only transaction.