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SinCitySinner 67 Reviews 766 reads
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good_ole_boy_9541419 reads

are any biz owners able to write the hobby off?  if so what the hell do you tell your accountant?

I am pretty sure many of the girls have companies set up and pay a % of taxes to comply with their lifestyle.  just wondering how this may work for some others that play in the hobby.

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SinCitySinner883 reads

Well... "I see a train-wreck coming..." :D

Related Link: Folsom Prison Blues.

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donbecker54893 reads

Why leave any paper trails? When the IRS does a full audit (I've had three, came out clean each time), they go through everything.  

A write-off is good for 15-35%, depending upon tax bracket. Why chance it for dimes on the dollar?

I'd be very surprised if any providers put anything on paper, no matter how well they thought they could disguise it.

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GaGambler964 reads

somehow I just don't see myself doing that.

OTOH If I treated a client to a trip where the hobby is legal, I could see myself listing the cost of "his" hookers that I paid for as part of the T&E deduction.

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Dr Who revived901 reads

I still like that category...and it's truthful in most cases  LOL

The question is the definition of "ordinary and necessary".  In our little world I am sure that most would agree this is ordinary and quite necessary.  However in everyday life you'd need to have a really open minded auditor to agree with that assessment.

I like the theory of paying for hookers for the client.  But the question remains as to the "ordinary and necessary" component.  Whether it's legal in some country is not relevant to this issue...sorry  ;)

A way to really work it would be if a john wants to hire his hooker as a subbie...err, subcontractor and send her a 1099 for her services.  Obviously he needs her real identifying information to do so, as well as having enough confidence that she won't go BSC on him, and vice versa.  Should someone want to do this type of transaction...have HER send a real invoice each month...as attorneys and CPA's do  LOL

For the average W-2 earner...nowhere to really write hookers off.  Maybe as an employee business expense...but that would garner some attention assuming the ratios are not in line with typical Form 2106 expenses.  Maybe under donations?  Yea...that's why the hookers put donations on their site.  Hmmm...no receipts might be an issue, but a friendly (maybe a hottie) IRS auditor would just wink and tell you "attaboy"...might work  LOL

Posted By: GaGambler
somehow I just don't see myself doing that.

OTOH If I treated a client to a trip where the hobby is legal, I could see myself listing the cost of "his" hookers that I paid for as part of the T&E deduction.

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SinCitySinner837 reads

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Dr Who revived735 reads

And I didn't find one anywhere in the Internal Revenue Code either  :D

But I did stay at a Holiday Inn Express the other night!

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SinCitySinner767 reads

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Dr Who revived768 reads

Einstein

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Back_In_Black1045 reads

Posted By: ChgoCPA
And I didn't find one anywhere in the Internal Revenue Code either  :D  
   
 But I did stay at a Holiday Inn Express the other night!

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Back_In_Black827 reads

Cut and pasted that pic of him yesterday . Also heard she told him she looks sexy in boots.

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GaGambler803 reads

The relevance of whether it being legal in the jurisdiction of where it occurred is simply a matter of it being rather foolish to provide an airtight paper trail and admission of guilt to having committed a crime to a federal agency who may or may not decide to pass it on down the road to someone who might decide to pursue it. Unlikely as it is, it just seems rather foolish to file a document that I need to swear is the truth that confesses to having committed a crime.

I have a couple of scenarios where I could easily make the case that it was not only a "normal" part of doing business, every bit as normal as taking a client out to dinner, but necessary as well. Keep in mind, I don't own a body shop, I own an oil company. Some things are quite "normal" in my business that are nowhere near normal in others.  I can think of several Dallas oil promoters that routinely run up several thousand dollar strip club bills in order to drum up business. To call them "oil companies" would really be a stretch, but they technically are in the oil business, even though IMO they are just high end con men.

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Dr Who revived955 reads

Its really not any different with some of the asinine expenses that many entities run through anyhow.  Remember that the IRS is only looking for underreported income and overreported expenses.  To honestly think that some revenue officer is going to be so enthralled with hooker costs which, as you claim are ordinary and necessary...they would quickly move onto something that they can turn into tax revenue.

Most of the revenue agents I've worked with have seen it all...kind of like the hookers here.  Yet I'm never surprised when a "no change" is awarded a taxpayer...at least those that I have been involved with.  

Now if you were an agency...and only reported a fraction of your income..and then used the wires to transfer money via interstate and international...and used a portion of this unreported income to finance your lifestyle and not claim it on Form 1040...yea.  I'd be concerned for you   LOL

Oil business whores...are they worse than Wall Street whores?  Oh sorry...I meant con men  :D

Posted By: GaGambler
The relevance of whether it being legal in the jurisdiction of where it occurred is simply a matter of it being rather foolish to provide an airtight paper trail and admission of guilt to having committed a crime to a federal agency who may or may not decide to pass it on down the road to someone who might decide to pursue it. Unlikely as it is, it just seems rather foolish to file a document that I need to swear is the truth that confesses to having committed a crime.  

I have a couple of scenarios where I could easily make the case that it was not only a "normal" part of doing business, every bit as normal as taking a client out to dinner, but necessary as well. Keep in mind, I don't own a body shop, I own an oil company. Some things are quite "normal" in my business that are nowhere near normal in others.  I can think of several Dallas oil promoters that routinely run up several thousand dollar strip club bills in order to drum up business. To call them "oil companies" would really be a stretch, but they technically are in the oil business, even though IMO they are just high end con men.

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GaGambler841 reads

and under oath to boot.

and no, us oil business whores are head and shoulders above the whores of Wall St, except of course for those that are both oil and Wall st whores. I played in those waters for a few years, long enough to know I prefer not to.

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marikod848 reads

as the author of "Searchlight Nevada" found out when he deducted the cost of seeing prostitutes in various legal Nevada brothels on his tax return. The taxpayer said he was doing "research" for his novel about prostitutes and, therefore, this was an "ordinary and necessary expense incurred in a trade or business."

       The tax court disagreed and said these expenses were just "too personal in nature" to permit their deduction. I imagine the same result would follow if you treated a client to a night at the brothels no matter which code provision you tried to use to deduct.

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Dr Who revived796 reads

Which creates a loss.  The loss is subject to limitations given that writing the "Great American Novel" needs to produce a profit 2 out of 5 years to not be considered a hobby.

It also depends on who is doing the audit...and who is appealing the audit.  Life is like a box of chocolates...you just never know.

Posted By: marikod
as the author of "Searchlight Nevada" found out when he deducted the cost of seeing prostitutes in various legal Nevada brothels on his tax return. The taxpayer said he was doing "research" for his novel about prostitutes and, therefore, this was an "ordinary and necessary expense incurred in a trade or business."  
   
        The tax court disagreed and said these expenses were just "too personal in nature" to permit their deduction. I imagine the same result would follow if you treated a client to a night at the brothels no matter which code provision you tried to use to deduct.  
 

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marikod889 reads

deduction for the tax years in question. This was a start up for the author but the tax court still found he qualifed as a trade or business- they court just disallowed the deduction for the amounts he paid to prostitutes for alleged "interviews."

        And this is not an auditor's opinion. The taxpayer sued the IRS and the case was decided by the tax court and affirmed by the Fourth Circuit. So I would think it is controlling authority on the tax court's holding about the deductibility of expenditures "so personal in nature", unless Section 162 has been changed since then::

 We allow petitioner to deduct the joint venture payment of              
          $4,350 for 1993.  However, no deduction is allowed for the                  
          interview expenses.  We find that the expenditures incurred by              
          petitioner to visit prostitutes are so personal in nature as to              
          preclude their deductibility.  In evaluating whether certain                
          expenses are personal or qualify as business expenses under                  
          section 162, the Court has found that some expenses are so                  
          "inherently personal" that they almost invariably are held                  
          to come within the ambit of section 262.

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Dr Who revived788 reads

RENT  LOL

So this asshole files suit over less than 4k (presumably)?  Are you serious?  

He should have sued the fucking tax preparer for incompetence...at least he may have gotten his whole 4k back  :D   And then sued the pathetic lawyer for incompetence in arguing the case.  Maybe he did both...but I doubt this genius has anyone leading him to make a smart decision.

The tax court calls it inherently personal...bullshit on that as well.  Getting a prostate exam is inherently personal.  And he should deduct his experience here as just that  LOL

Posted By: marikod
deduction for the tax years in question. This was a start up for the author but the tax court still found he qualifed as a trade or business- they court just disallowed the deduction for the amounts he paid to prostitutes for alleged "interviews."  
   
         And this is not an auditor's opinion. The taxpayer sued the IRS and the case was decided by the tax court and affirmed by the Fourth Circuit. So I would think it is controlling authority on the tax court's holding about the deductibility of expenditures "so personal in nature", unless Section 162 has been changed since then::  
   
  We allow petitioner to deduct the joint venture payment of              
           $4,350 for 1993.  However, no deduction is allowed for the                    
           interview expenses.  We find that the expenditures incurred by                
           petitioner to visit prostitutes are so personal in nature as to              
           preclude their deductibility.  In evaluating whether certain                  
           expenses are personal or qualify as business expenses under                  
           section 162, the Court has found that some expenses are so                    
           "inherently personal" that they almost invariably are held                    
           to come within the ambit of section 262.

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maxwell44873 reads

One of the questions that the tax software asked me was if I have any "hobbying expenses" that I want to claim as a deduction.   LOL!

Of course, Chicago CPA told me that "rent" is more appropriate.  You know... you can rent buildings, machinery, equipment, pussy, all of these things can be rented.  

Of course, if you don't issue a 1099 for rent payments that are over $600, then the IRS may disallow your pussy related rental expenses.

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oldted959 reads

Not on murder, drug dealing, pimping, or extortion....but tax evasion.  

Posted By: good_ole_boy_954
are any biz owners able to write the hobby off?  if so what the hell do you tell your accountant?  
   
 I am pretty sure many of the girls have companies set up and pay a % of taxes to comply with their lifestyle.  just wondering how this may work for some others that play in the hobby.

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Dr Who revived1080 reads

And Stallone nailed him as well  LOL

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decadentxy866 reads

Ah Blade, wherefore art though?

Say I sub a provider & give her some job title like "financial planner".
 Keep her off official payroll.
But get the 1099 & receipt exchanges you mentioned.
And all i have to do is turn that in?
Any alarms, alerts to be aware of?

btw-
I think i have been deducting my ter membership..

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Dr Who revived823 reads

Just keep in mind the hooker would need to supply you with all her personal info so that the 1099 isn't with some phony ID.  Submitting fake 1099's will get expensive for the entity filing them...and provide nothing as far as documentation.

Additionally you'd want your hooker gal pal to render monthly statements to support your payments to her.  And then if she is audited...you need to hope that she doesn't rat you out as your info is part of hers.  It could become sticky in an audit of her...and you're the only 1099 there.  It would trigger an audit of your expenses as well.

The reality is pay in cash...you'll sleep better at night  LOL

Posted By: decadentxy
Ah Blade, wherefore art though?  
   
 Say I sub a provider & give her some job title like "financial planner".  
  Keep her off official payroll.  
 But get the 1099 & receipt exchanges you mentioned.  
 And all i have to do is turn that in?  
 Any alarms, alerts to be aware of?  
   
 btw-  
 I think i have been deducting my ter membership...  
   
 

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London Rayne1016 reads

Many restaurants and bars will give you a fake receipt if you tip them well saying you spent x amount at their place when you spent it somewhere else.

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Dr Who revived914 reads

Why not pick up losing tickets at the racetrack as well  LOL  (Yea...I know some do that as well).

Just better hope that they are clients and some ambitious revenue officer doesn't go an knock on their door to compare notes.

Why not just buy a package of receipts and write in what you want...it's the same difference as far as an auditor would be concerned...assuming they are all cash payments  LOL

Not many businesses will pay cash for dinner...maybe oil guys do...but most others use CC for that (and the miles).

Like I said...IRS auditors have seen all of that shit.  If some ass is putting 100k a year as entertainment (it's only 50% deductible anyhow) for a small business...yep, that'll get some attention  :D

Posted By: London Rayne
Many restaurants and bars will give you a fake receipt if you tip them well saying you spent x amount at their place when you spent it somewhere else.

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London Rayne889 reads

When I was a bartender I did this all the time, and yes, it was always paid in cash. The guy would spend 100 and tell me to make it 200 and tip me, so I just did it. Now, I assume this was not an every day or every month thing, or like you said...will certainly be noticed.  

A guy doing this a few times a year is not likely to be looked at too closely. The bar I worked at was a bit of a faux bar, and more of a place to pick up call girls. They would sit around the bar and solicit guys into buying them drinks, and then you could take one in the back or home for the night if the owner got paid off.  

Sooooo, if a guy wanted to pay "Roy" off for a girl, he had me ring that up as drinks and food for 5 people...Roy got his cash, and the hooker got her money, all on an expense account. I suppose they just listed that as "entertainment." I mean seriously...I have seen 400 dollar dinners being paid for by Real Estate agents, Doctors, Attorneys, etc.  to smooze over some prospective clients.  What's the difference other than the obvious, which is NOT exactly listed on a statement lol. Be it a 100 dollar lobster or a 100 dollar hooker, both are still going to fall under "client entertainment."

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Dr Who revived811 reads

I was thinking in terms of the john taking the hooker for dinner...and fucking.  I guess if we're talking BP caliber a couple of bills might get that done.  But if he's paying for a 4 hour...it's likely to be 1,500 for the hooker along with dinner.  So to put that on a restaurant tab...OK.  But to document in an audit you'd really need to show it was paid by CC...cash is bullshit in that case.

It's also different if some dude is running up CC payments on the Company credit card.  Honestly...that is so pathetically easy to spot.  And plenty of morons do that...and then are looking for new employment with no references  LOL

Anything done in moderation has a shot.  The funny thing is the gals are more conservative on how they want to play this game.  And these guys are fretting over how to write off a couple of thousand a year...maybe even 15k.  It's so asinine it's comical  :D

Posted By: London Rayne
When I was a bartender I did this all the time, and yes, it was always paid in cash. The guy would spend 100 and tell me to make it 200 and tip me, so I just did it. Now, I assume this was not an every day or every month thing, or like you said...will certainly be noticed.  
   
 A guy doing this a few times a year is not likely to be looked at too closely. The bar I worked at was a bit of a faux bar, and more of a place to pick up call girls. They would sit around the bar and solicit guys into buying them drinks, and then you could take one in the back or home for the night if the owner got paid off.  
   
 Sooooo, if a guy wanted to pay "Roy" off for a girl, he had me ring that up as drinks and food for 5 people...Roy got his cash, and the hooker got her money, all on an expense account. I suppose they just listed that as "entertainment." I mean seriously...I have seen 400 dollar dinners being paid for by Real Estate agents, Doctors, Attorneys, etc.  to smooze over some prospective clients.  What's the difference other than the obvious, which is NOT exactly listed on a statement lol. Be it a 100 dollar lobster or a 100 dollar hooker, both are still going to fall under "client entertainment."

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Crisis25926 reads

Damn now I want to open up my own bar.

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mrfisher726 reads

for farming expenses.

After all, she did raise about a thousand peckers in the last year.

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Dr. joe872 reads

that your participation is a health/medical expense.  If that pushes your annual total high enough, you could tx deduct it....
but we would have too decide what disease we are treating.

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Dr Who revived748 reads

I'm sure the same diseases can be used for "hooker treatments" as a health expense.

I'd add the swimming pool and sauna as well....plenty already do  LOL

Posted By: Dr. joe
that your participation is a health/medical expense.  If that pushes your annual total high enough, you could tx deduct it....  
 but we would have too decide what disease we are treating.

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mrfisher1088 reads

medical expenses, in fact, I'd love to see them covered by health plans.

The medical and psychological benefits are well known.

But, it would make too much sense, so dream on.

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