To not report income is a jailable offense.  Who wants that hanging over their heads?  If a lady does not report her full income, her ability to get credit is greatly hampered (anyone ever try to buy a nice car or house with a suitcase full of cash or a reported income of 30k/yr?), her ability to invest for retirement/college/etc is greatly hampered and she runs the risk of having her assets seized if the IRS catches on.  Bad, bad move...

Some ladies and gents seem to dismiss the fact that while this demimonde offers a great deal of fun, it is also a business.  And businesses report income, file taxes, take legitimate deductions for the line of work declared, establish payroll/retirement/benefits for employees and are accountable to their customers.

Why would anyone want to share this information on an open board?

Why would anyone outside of a revenuer even care?

I hope the gals are smart enough to list their occupation as dancer, entertainer, personal consultant & pay tax.
Remember Al Capone didn't go to jail for murder, it was tax evasion.
More recently ask Richard Hatch about not paying...  
Paying your taxes should qualify you for all sorts of government benifits.  
skb

Not only is it legaly required, as has been pointed out here, $30,000 in cash in a suitcase is really problematic for doing anything other than getting chips at a casino.

When I started in this activity, a very successful woman told me she made $200,000 a year. This inculded her real estate investments (which eminated from her work as a an escort) and waa after taxes which she made sure she reported fully.  

Oh, she also had a retirement plan she had established and made regular contributions, which as we know if done correctly, are deductible.

Forgive me, I'm sure this topic has been covered many times before in forums, but I did do a search and really came up with nothing. I know there are a lot of providers(at least I would think so) who are making 100K or more  a year while doing this. How do you ladies handle that kind of a situation with Uncle Sam? I have  a small steady stream of cash income, but it's small enough that it really just goes to standard expenses on a regular basis. At some point I would think there would be a significant buildup of assets from the industry that would need to be invested in some form or another. Just my idle brain wandering.

That it is none of our business.

I'm sure each lady has a way of dealing with that.

As for forgiving you , that is up to the ladies.


Thank You
2011 = 28

Dear Ms. Cole:
I was wondering considering the economy, if you have had a subpar year would you put yourself down as a 3 or a 4 versus a one or a two to get more money back? Also being an independent contractor could your accountants be creative with certain deductions you would have with respect to expenses? I know that it is right around this time of year that you start to think about these things.  Also if Obama and congress let the tax rates expire, I was wondering what would be your strategies then with respect to certain issues as well with regards to the disposable income your customers would have? Thank you and I just wanted to have some intelligible conversation from a cerebral and savvy young businesswoman.

When I first started out as a provider, I used to have a lot of cash lying around my house, when I started making a lot of money, I finally bit the bullet, put it into a business account and pay taxes at the end of the year like anyone else who earns money.

instead of saying OH MY GOD I yelp out THAT'S MY RENT, THAT'S MY RENT lol I must have too much time on my hands

I have been doing taxes for the last 7 years. On the form where you put the self-employment income you have to choose a business category and six digit code. I would recommend using
711510 Independent artists, writers & performers

...i love these "hall monitor" types who try to restrict conversation on an open board like this.  "none of yur business", hilarious!!! what r u, my mother?!? screw u guys!this is an interesting topic, everybody's anonymous, nobody's slandering anybody, i'd love to hear an educated opinion on this.

The IRS only cares that you have paid taxes on your income.  A provider needs to claim her income and pay taxes to keep the tax guys away.  I don't believe you need to list you job title, but something like consultant would be fine.

And I buy myself a few nice things every now and then. And once a year I fire up TaxAct and report it all to the good ol' IRS. I use my income pretty much like everyone else who earns money, basically. That it's primarily in cash doesn't change much.

And I neither confirm nor deny the income figure you mentioned. :p

I am so glad you gals are doing your share to support our wonderful Federal Government!

Right on, man!  "hall monitors" ............ very funny. LOL

...because my wife is a painter and lists her expenses by category, such as Models, Paint, Props, etc.  Can you imagine being the IRS guy who reads an escort's tax return and sees categories like: "Dildos $200; lube $600; condoms $5000; breast implants $10,000."  It must really brighten his day.

your personal financial transactions on a public Inet board?

I assume ladies are investing in their future, and paying their share to Uncle Sam

And if I am wrong? Not my business.

I ran some numbers and I'm disappointed in how little providers make in this business.  An independent who works 3/4 of the year has revenue of:

Donation - 400
Appts/Day - 3
Days/Week - 5
Weeks/Yr - 39
Total Revenue - 234,000

Assuming that the provider takes home 85% of that before taxes, her income is 198,900.  At a 30% tax rate, she clears 139,230.  That's much lower than I expected, even with the high profit margin.  I thought providers were clearing 300K easy.

You learn something new everyday...

Dear Ms. Cole:
With respect to a 3 or a 4, I was alluding to your number you could use when you fill out your w-4 form so that they would take out less taxes. With respect to the Bush Taxs cuts if they let them expire the rate would be higher and it may be prohibitive to the men that you would see because some of your regulars would see you less if the tax cuts expire if not at all. This would be a question that would begin to be answered with more questions such as the income bracket most of your clients would be in and how they would shelter and protect themselves so they wouldn't lose their shirts and their fun income. That is why I was saying that you would have to get creative to retain the old business if the tax cuts would expire. It would also have questions of what the dominant industry for the locals and would you also do business in an international cities where there would be several travelers as well.

TaxAct that is...I hate that software, but then again I've spent most of the last couple days evaluating tax software, so my brain is kinda mushy right now.

I use the online Deluxe edition (federal only, godblesstexas), and have always been really pleased how easily it's able to walk a tax dummy like me through the process.

Every estimation I ever see about how much we make assumes business is steady, steady, steady. I assure you there are ups and downs just like any business has, and we've definitely not been untouched by the crummy economy.

Three $400 appointments a day, five days a week, every week she works??? Someone's been feeding you inflated figures.

Dear DL (always have loved that handle, btw),
I'm not sure what you mean by "putting [myself] down as a 3 or 4...".  Please explain.

As to deductions, there is very little creativity needed...  I am both model and business woman (2 different C corps) and as such have many legitimate deductions.  For modeling, my personal care expenses (hair, nails, tanning, facials, cosmetic surgery/injections/etc, but unfortunately not my gym membership or health food/groceries/supplements since neither category have been prescribed by a doctor), "costumes" - outfits requested by clients or various accoutrements, plus all the typical mileage, travel, lodging, meals, entertainment, advertising, etc costs are deductions.  For my other business, all the standard items plus computer/electronic, internet/phone, home office type costs are deductions.  My companies pay salary, retirement, health care, life insurance, car and housing allowances.... Just like anyone else's home based business.

Fortunately, Congress didn't permit the Bush tax cuts to expire so I have 2 more years of the benefit of those before I need to strategize how to reduce my tax liability.  But since I've incorporated, my personal income is very different than my corporate income.  My personal income can be adjusted to whatever level makes for the lowest bracket in both personal and corporate tiers.  As far as "...strategies with respect to certain issues...disposable income of [my] customers...", again, I don't follow you.  If you could give me examples of what you mean, I might be able to answer.  

And honestly, the gents I see haven't seen much change in their disposable income - at least as far as I can tell given my initial booking rate and repeat rate.

Self employment tax/ SSecurity
Medical insurance/ad hoc medical expenses
Advertising/marketing
Incall, outcall
Travel
Food/booze/clothing/laundry/utilities

Other ancillary stuff I have never even though of…..

And where did you come up with 3 appts a day, 5 days a week @ 400 an hr?

It always amuses me when guys ‘analyze’ how much they think providers make. You don’t know. You’ll never know. Why the hell do you care?

those are some ridiculous figures first of all, and if a provider managed to clear that kind of income it would by no means be a "disappointment"

That's only if the provider is providing on a FULL TIME basis. If she is, don't forget the cost of her incall location and travel expenses if she travels.

Your alias.

Your claim that you can not find discussions of this topic when they are common.

In reality each time it comes up some men feel obliged to do some quick but mostly inaccurate math to show how the typical lady is a millionare by age 25.  Men so grossly overestimate the "typical" lady's income it is laughable.  I will believe a very small fraction of ladies make serious money, but far far more make a lot less.  In most cases the math over estimates the number of sessions by a large amount and under estimates the expenses by a significant amount as well.  Far too many, especially the single mom providers, are struggling to keep above water.

Regarding personal/dependent exemptions: Maybe and no. From what I understand, there is nothing prosecutable about claiming 10 extra dependents during the year but you must prove your dependents (with SS#) on your taxes.  If my accountant advised it, I would have no problem claiming extra throughout the year but would always use the correct number on my tax filings.

As to the possible ramifications in my world, of the possibility of taxes going up, possibly in 2 years, for gents who possibly will book me.... First, that's a heck of a lot of "possibility" to deal with.  Second, I have no personal knowledge of anyone's particular tax structuring/sheltering/etc other than my own so for me to Armchair Quarterback their personal finances is ridiculous.  Third, I don't happen to believe the economy will support permitting the tax cuts to expire - making whomever wins the White House in 2012 ACCOUNTABLE to the citizens of this country to either renew them or introduce a palatable alternative. So fretting over it is 'much ado about nothing' at this point.  Fourth, should the unimaginable happen, I'll roll with it and do the best I can to manage my businesses when the time comes... just like everyone else!

Regarding the dominant industry of my locals - there isn't one.  The majority of my business is national and covers a wide range of industries.  Would I do business internationally?  Sure!  I'd enjoy that now but the opportunity isn't very high. If the opportunity arrived at any point, and it made sense to take it, I would take it!

Since the dawn of time, there have always been those with disposable incomes.  I firmly believe there will always be a segment of society that can afford luxury items. Exactly who those people may be may change, but the market will always be there.

Does that help?





-- Modified on 1/20/2011 8:47:53 AM

A good escort can make very good money.  For most folks $100,000 a year or more is very good money.  The other primary motivation is the time it takes to make that money.  Escorting is a job that allows a woman to work when she wants to work.  My ATF dances and escorts, she works about three days a week.  She makes a very good yearly income and is able to do it working less than 30 hours a week while being able to take a week or two off at a time several times a year.  

I can only relate the experiences of a few of my long-time regular ladies but none of them would ever work five days a week seeing three or more clients a day week in and week out.  The gals I've seen when traveling who DO work that much are generally very mechanical, very rushed and VERY tired.  That's not how a smart lady maximizes her revenue, enjoys her work or her life.

Hey, wait a minute!  "and spend as much time "off" as i can doing things i like .."  You mean you don't "like" being with this bunch of slimey mongers????  Waaaaaa!!!

Reminds me of a saying... Better to keep your mouth shut and appear ignorant than open it and remove all doubt.

Smart (or, conversely, foolish) business people can be found in all walks of life, including this one.

thanks. I used to always put mine down as web design or computer tutoring but this makes more sense.

I never said that providing is a normal job.  The median household income in the US is around 43,000 a year. Anyone who can make more than double that while working considerably less than a 40 hour work week, taking a fair amount of time off and not having to answer to an employer is, in my estimation at least, doing pretty well...way above average or "normal"

You can quote estimated earnings from now until doomsday but the fact is you are guessing at everything.  If the lady is happy with her income that's all that really matters.

-- Modified on 1/21/2011 7:41:24 PM

Open your mind and it will enlighten you.  Your numbers are very far off, as they are trying to tell you.

of course there's no way to know what a provider makes and its none of our business. as stated earlier, all girls work different amounts. and its crazy to think they stay busy all day, every day that they're on the clock. an old friend of mine (retired provider) told me that she left her cell phone on 6 days a week. did she work all 6 days? 99% of the time no. but she had learned that only being available 3 or 4 days a week usually meant she wouldn't make much that week. her goal was to average $1500/wk - whether she worked 1 day or all 6. she figured that making around 80K/yr would leave her with a net of around 50K after expenses. so i've always just used those numbers - give or take a bit - as to what the average provider makes. but again, they're all different.