You have a dildo that suction cups to the wall? I would start hanging my hand towels on it for laughs and space saving 
Serious questions about tax filing for SP's!
- Thread starter OriannaXO
- Start date
If you plan to run for Prime Minister one day, such as myself JK lol, you can also use the title of an occupation completely unrelated to the sex trade. Yet still get all the deductions due to you as an escort. They are totally cool with that and in 4 years I have yet to be outed LOL
Damn, can you imagine that?
"ah that is $$.5 + 12% HST = $$$
Doh!, I didn't bring that much
Nothing like having to hide information in order to get ahead eh?
I have this crazy idea that honesty is the best policy but then I'm kinda weird that way.
Last time I checked you didn't have a vag and you don't have the ability to fully comprehend the judgement SP's continuously face for our ' job description ' having never worked as one. So I agree honesty does rock BUT there is a time and place for a half truth and self protection.
While more time and effort is involved it can make sense for a lot of people tax wise. I can see a lot of benefits for SP's because it allows for a smoothing out of income over a number of years along with perhaps an ongoing deferral of income, via a bonus payable. The over all beauty of this is it allows an SP to be completely honest and not get hit with a huge tax bill, relative to what a proprietor might get hit with. So a tax deferral and in some cases a significant tax reduction is possible.
However discipline is required.
Your HST has to be paid on a regular basis and there's a significant added discipline that takes place if you take an ongoing salary and may much of your taxes as you go. Certainly those SP's who are making 100K+ should consider this option, especially if they don't have a lot of RRSP contribution room accumulated.
FWIW, I don't have any SP clients but I have a fair number of clients in the movie industry, most of whom are incorporated, and you'd be surprised how related many of these issues are with respect to the issues of deducting make-up, clothing, etc.
Most of the new clients I get in the movie industry are in fact incorporated but they, or their previous accountant, never armed them with the discipline necessary to operate the company in a proper manner, cause the name of the game with corporations is to file everything on time and then you can plan, and it's almost impossible to plan retroactively if you're a year or two late with things.
Going on salary's the key, along with having the discipline to keep track of your income and expenses and HST payable status on an ongoing basis, which you'd have to do whether you incorporate or not.
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Don't mistake registering a company (incorporating a business or as a sole proprietorship) being the same as getting a business license. BL's are issued by the city you are doing business in; the company registration is done by the province; taxation (CRA) is federal and done by the gov of Canada. Registering a company is not a bad idea, it can help separate the businesses debts or responsibilities from the individual. Sole proprietorship won't limit your own liability, fwiw, and won't protect your privately owned assets.
It is easy to get confused about these things if you don't have any experience in owning, operating, managing or starting a business.
It is easy to get confused about these things if you don't have any experience in owning, operating, managing or starting a business.
I think it is more appropriate to say a deferral in taxes rather than a reduction...
No. I thought about the word I wanted to use, and would say a reduction is possible, because if you can spread the same amount of income out over two years, you've both deferred and reduced your income, assuming this results in your income being in a lower tax bracket than would otherwise be the case.
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To me, registering a company means getting a business license which is a municipal requirement.
Incorporating a company on the other hand is creating a separate legal entity in which to conduct your business. You can incorporate under provincial or federal statues.
Incorporating a company on the other hand is creating a separate legal entity in which to conduct your business. You can incorporate under provincial or federal statues.
Wow, isn't that the truth!
If any ladies or Perbies have a good accountant they can recommend, please PM me.
If any ladies or Perbies have a good accountant they can recommend, please PM me.
Thanks for mentioning this. I've talked to a few self employed homeowners and tax professionals about this issue and have received different answers. My understanding is that under certain circumstances the tax deduction can equate to or even exceed the principle tax exemption. Obviously there are a lot of variables such as the percentage of business use, length of ownership and real estate value fluctuations.
Although I'm no expert I would advise anyone who plans to be in the business in the longer term to be conservative and organized when it comes to bookkeeping. Save your receipts
What records does a SP keep to support her income? Other than the date, would the client's name be necessary? Just wondering.
It's not all that grey as far as I'm concerned.
Wilde is correct. DON'T CLAIM CCA ON YOUR HOME.
for a host of reasons, not the least is that it may all end up being income in the year you sell it, if the value of your residence has increased since you bought it. It's called recaptured income.
And if that applies along with the loss of your principal residence exemption, you may be looking at a far bigger tax bill then you ever imagined. The only plausible case I could see claiming CCA would be if the real estate market was heading rapidly downward and wasn't anticipated to rebound anytime soon.
Keep in mind when you're depreciating an asset you're essentially telling CRA that it's decreasing in value and if that turns out not to be the case, well they'll want the $$ back.
Also one has to realize none of this applies to land, so it's not what you paid that determines how much you can deduct, it's how much you paid for the building seperate from the land value.
Wilde is correct. DON'T CLAIM CCA ON YOUR HOME.
for a host of reasons, not the least is that it may all end up being income in the year you sell it, if the value of your residence has increased since you bought it. It's called recaptured income.
And if that applies along with the loss of your principal residence exemption, you may be looking at a far bigger tax bill then you ever imagined. The only plausible case I could see claiming CCA would be if the real estate market was heading rapidly downward and wasn't anticipated to rebound anytime soon.
Keep in mind when you're depreciating an asset you're essentially telling CRA that it's decreasing in value and if that turns out not to be the case, well they'll want the $$ back.
Also one has to realize none of this applies to land, so it's not what you paid that determines how much you can deduct, it's how much you paid for the building seperate from the land value.
Thanks for mentioning this. I've talked to a few self employed homeowners and tax professionals about this issue and have received different answers. My understanding is that under certain circumstances the tax deduction can equate to or even exceed the principle tax exemption. Obviously there are a lot of variables such as the percentage of business use, length of ownership and real estate value fluctuations.
Although I'm no expert I would advise anyone who plans to be in the business in the longer term to be conservative and organized when it comes to bookkeeping. Save your receipts
The answer is yes you can claim both your straight job income (T4?) and your self employed SP income on the same tax return. As far as claiming deductions without receipts, here's a bit of a tip. If the accountant doesn't know you don't have the receipts he'll likely claim what you ask him to claim.
Why? Because they're not auditors, and they don't work for CRA. You may notice that many tax preparers have a disclaimer that says something like "prepared with information supplied by taxpayer without audit or verification"
The only thing is if CRA does ask for receipts and you can't produce them, they'll likely deny the expense, so if you're doing something like this, try and be conservative for whatever expenses you claim.
For example if you normally use a box of condoms (hereafter known as supplies) during a working day and you times that by the number of days you worked during the year..and the average cost of a box is $10, then this seems like a reasonable number whatever it adds up to. What many people don't realize is that in many cases once an auditor has reviewed your stuation they actually give you a proposal, and within limits of common sense you can negotiate this.
Personally if this were to occur as outlined, I think for the most part they'd be quite happy to see you reporting this income and would probably allow the deduction if for no other reason than to keep you in the system and have you paying some taxes as opposed to no taxes. But this is a discretionary outcome, as absent receipts they technically would be on solid ground denying you the expenses period. The other thing to keep in mind is for the most part tax returns are statue barred after 3 years, meaning CRA can't simply go on a fishing expedition.
Why? Because they're not auditors, and they don't work for CRA. You may notice that many tax preparers have a disclaimer that says something like "prepared with information supplied by taxpayer without audit or verification"
The only thing is if CRA does ask for receipts and you can't produce them, they'll likely deny the expense, so if you're doing something like this, try and be conservative for whatever expenses you claim.
For example if you normally use a box of condoms (hereafter known as supplies) during a working day and you times that by the number of days you worked during the year..and the average cost of a box is $10, then this seems like a reasonable number whatever it adds up to. What many people don't realize is that in many cases once an auditor has reviewed your stuation they actually give you a proposal, and within limits of common sense you can negotiate this.
Personally if this were to occur as outlined, I think for the most part they'd be quite happy to see you reporting this income and would probably allow the deduction if for no other reason than to keep you in the system and have you paying some taxes as opposed to no taxes. But this is a discretionary outcome, as absent receipts they technically would be on solid ground denying you the expenses period. The other thing to keep in mind is for the most part tax returns are statue barred after 3 years, meaning CRA can't simply go on a fishing expedition.
more thoughts from the basement dweller *snort* crawl back under your rock you woman-hating slimey thingOh ....
This thread is just too good NOT to comment!
Of course they are "iffy" FSD!
Let's face it FSD they are not going to come right out & state in their tax filing that they are deliberately trying to cheat the system are they?
Also, of the possibly 20% of SP's who actually do file their taxes name me an SP who does NOT lie about her actual income when filing.
Do you really think that they would report the full $180,000 plus that some of the girls I know make?
HELL NO!
One of the gal I know reported only $38,000 last year.
Have to say Miss Jasmine is giving some very sage advice here.
Kudos!
True Dat!
I also do not see Vancouver adopting the same rules as Victoria anytime soon.
I would suggest registering a sole proprietorship type of business license.
This site will help with doing that:
http://www.bcbusinessregistry.ca/index.htm
Very good advice here too.
Be honest & honestly use appropriate write offs - like other ethical people do.
Yes, as well as WorkSafe BC.
Failure to do so can result in some heavy penalties if you are caught.
Nothing like having to hide information in order to get ahead eh?
I have this crazy idea that honesty is the best policy but then I'm kinda weird that way.
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What are you talking about crazy person? You are delusional as always, I see. OOoh Threats. How typicalPrevious unedited commentary:
Gee thanks Adriana✿!
You're making me blush.
Tell me, have you ever figured out who I am?
Last time you attacked me you assumed I was some other dude until a couple other SP's enlightened you.
Glad you hear you well wishing for me on finding a mate but I assure you I am doing fine in that department.
I don't feel sorry for you ironically, cuz I believe that when one makes their bed they should damn well have to sleep in it!
Just remember to file your taxes this year Adriana✿ cuz you never know who might report you to CRA if you don't.
Please feel free to use the advice I posted or PM me if you need any help.
Best wishes
I'm to busy HAVING A LIFE to bother with a woman hating meanie like you. And I file every year princess, but thanks for caring.
