Income Tax Implications...

[UrethraFranklin]

I'm not sure if this has been discussed before, so if it has please excuse the redundancy.

With the April 15th tax deadline quickly approaching, I wanted to ask a few questions about the income tax implications for escorts. I cannot discuss or ask advice from anyone in my personal life, so I will take a momentary break from trolling and be serious here on ECCIE. Yeah, call Guinness.

I realize that no one here knows my background, nor am I going to explain it, but I am a very analytical and numbers oriented person. I started escorting January of 2013 and created an Excel spreadsheet to meticulously keep track of all of my monthly income and expenses. For expenses I recorded website development, hosting, photography, advertising, lingerie, etc. Grossing well over $20k.

Section 162 generally allows a deduction for all ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business. Emphasis on the words "ordinary and necessary". Well, what is deemed "ordinary and necessary" to being an escort? Hmm…I have never filed Schedule C Income, so this is a little new to me.

Apparently, there are strippers who claim plastic surgery as "ordinary and necessary" expenses. Are escorts different? Lingerie, website, advertising, photography are necessary to being an escort. Is my logic flawed here?

I really am an honest person and don't want to evade paying any taxes, or do anything that could warrant a discreditable act and potentially derail my future plans. And I obviously don't want to trigger an audit by deducting unnecessary expenses.

How do other ladies handle this? Needing some advice as I'm planning to work on my taxes next week. PM me if you would rather not discuss in the open.

Thanks in advance,
UrethraFranklin

[eccienewbie]

I make a point of sending a 1099 to all of my hobby friends.

They seem to appreciate it.

A lot.

[UrethraFranklin]

This would be considered Schedule C income. Why would a 1099 be necessary?

[eccienewbie]

Originally Posted by UrethraFranklin

This would be considered Schedule C income. Why would a 1099 be necessary?

Dang, you mean I've been sending the wrong form?

Color me embarrassed. Sorry girls.

I'll get my accountant right on it, and I'll take responsibility for any penalties you might have incurred.

[UrethraFranklin]

Alright thanks assfuck.

[Guest092216]

I could be wrong here so i wanted to put it out in the open just in case, but this is what I have been advised:

Get yourself an LLC for $700 on legalzoom.com.
Claim only what u deposit into your bank account for bills and make sure to keep it under $60K/yr (or $5k/mo in monthly expenses). I try to keep it as simple and trasparent as possible. If you have to start another LLC to account for more funds then make sure you keep your LLCs earning under $60k/yr.

[eccienewbie]

Originally Posted by UrethraFranklin

Alright thanks assfuck.

Anytime, urethra.

So nice to be on a first name basis!

[UrethraFranklin]

Okay, I get it and I'm not a tax person obviously. I don't have a 1099 form for any of this income, so how do I report it on my income taxes?

[Jewish Lawyer]

Honestly, I think you can discuss it with an accountant and should do so. That idiot was kidding about the 1099's.

[UrethraFranklin]

Originally Posted by Jewish Lawyer

Honestly, I think you can discuss it with an accountant and should do so. That idiot was kidding about the 1099's.

Hi sweetie, I've missed you Yeah, but I honestly don't want to talk to an accountant about being an escort… I would rather just do my own taxes, privately.

[eccienewbie]

Originally Posted by Jewish Lawyer

That idiot was kidding about the 1099's.

Ah, you seem upset.

What a shame....

[UrethraFranklin]

Originally Posted by eccienewbie

Ah, you seem upset.

What a shame....

Why are you being a dick today? This thread is officially a non-troll zone. Trust me, I know it's hard to resist the urge. Look at me, I haven't even been rude to THN yet even though she still owes me an apology.

Oh man.

Now seriously, how do I claim this income? I am an honest member of society and need advice.

[eccienewbie]

Originally Posted by UrethraFranklin

Why are you being a dick today?

Why would this day be unlike any other?

Why didn't you explore your tax options and obligations before embarking upon this new business enterprise?

[UrethraFranklin]

Alright smartass, that's enough out of you. Are there any CPAs on this board I can discuss my issues with?

[eccienewbie]

Originally Posted by UrethraFranklin

Are there any CPAs on this board I can discuss my issues with?

I can help.

What's your question?