My SP Girlfriend Needs Tax Advice!

[InTheBum]

Hi ppl!

I am currently dating an SP and she is asking me what title she should put on her tax forms? Massage Therapist? She is also wondering, how much of her income should be declared...since it's a cash only business. I told her all of it! She just laughed... So what % is considered acceptable by othe Sp's on this board?

 

[BS Detector]

Hi ppl!

I am currently dating an SP and she is asking me what title she should put on her tax forms? Massage Therapist? She is also wondering, how much of her income should be declared...since it's a cash only business. I told her all of it! She just laughed... So what % is considered acceptable by othe Sp's on this board?

As a taxpayer, anything less than 100% is unacceptable to me. I pay enough, why should I shoulder her load too?

BTW...Next time anyone here reading this sees her, what % of her rate is acceptable to bring in?

 

[Sir_frixalot]

100%, but after grooming expenses and appreciation of her pussy that will probably be about 0. At least that's my experience. Yep, zero sounds about right.
C'mon dudes, if SP's pay taxes then the rates go up. Don'tcha get it?

 

[BS Detector]

C'mon dudes, if SP's pay taxes then the rates go up. Don'tcha get it?

They have enough legit expenses that they can claim.

 

[poontanghunter]

suggest any questions about taxes be kept off the board as who knows who is reading PERB, who knows who a handle really is, you have to be careful

 

[sinfulsydnee]

100 % of all income should be declared...and if your gf is licensed she can say escort...if she is not a registered massage therapist then she shouldn't say that she is....she can also hold the title of independent contractor, model, actress, any of these are acceptable...in fact, she could even say prostitute as that is not illegal in canada....

bear in mind, your gf can also claim her expenses directly related to her work, for example, condoms, lube, transportation to and from appointments, a percentage of haircare, cosmetics, services such as manicure, pedicure, facials, etc...adult toys, sheets, towels, lingerie, shoes, advertising, license or agency fees.....the list goes on...but...she must declare all her income!!!

 

[FoWoHo]

As being a escort it is not an issue to revenue Canada, they just want their share of taxes.
To declare it all, is the right thing but if you can get away with fudging the books, we all would...
The best thing to do is to go to an accountant.. the fee you buy for sound tax advice is more than worth it.

 

[BS Detector]

suggest any questions about taxes be kept off the board as who knows who is reading PERB, who knows who a handle really is, you have to be careful

I imagine we are all taxpayers. Maybe you feel you don't pay enough but I know the bastards nail me for enough so I ssure as hell don't want to pay someone else's load. Same applies for pirating software, shoplifting etc. Unfortunately, someone wil come here and post that need to get with reality and that it happens all the time as though it is right. Oh, I'm sure it will also bring out the "self-righteous" cries lol. Oddly enough, is it those same peple who complain when it happens to them and they get ripped off?

 

[Burn39]

Sydnee is right. Declare all income less expenses. Canada Revenue does not care what the income is from. Remember, the IRS got Al Capone for tax evasion - not booze.

 

[poontanghunter]

No Offence Dude!

I imagine we are all taxpayers. Maybe you feel you don't pay enough but I know the bastards nail me for enough so I ssure as hell don't want to pay someone else's load. Same applies for pirating software, shoplifting etc. Unfortunately, someone wil come here and post that need to get with reality and that it happens all the time as though it is right. Oh, I'm sure it will also bring out the "self-righteous" cries lol. Oddly enough, is it those same peple who complain when it happens to them and they get ripped off?

Just trying to keep everyone safe from the CCRA, as I've heard from some of the girls that one of their people is a board member who is gathering information on the people here on PERB in various ways

 

[Lady Companion]

All of it - but see an accountant.

Other than the obviously ethical reason why you should be paying your taxes (and GST)....she needs to think of it in a practical way as well.

If she doesn't declare it, she can't invest it. It's much better over the medium and long term to take the tax hit now, but then have your money appreciate over the years.

Sure....what lady doesn't want a collection of shoes, purses etc.(which could be purchased with cash) But realistically, a collection of properties is much better. She is doing herself a huge disservice if shorts out on the taxes. Not only does it prevent her from achieving a lifetime of independent wealth, spending money as quickly as she makes it solidifies horrendous spending/saving habits.

Seeing an accountant is the best way. Incorporate if you want to have additional tax benefits, or at the very least, set up a sole proprietorship. Pay your CPP, max your RRSP's and write off all the expenses you can.

Note to Sydney and other Ladies: It doesn't matter if you did decide to list yourself as an escort in your business.....you can NOT write off clothing, shoes or lingerie even if they are for work. The only possible exception may be custom costumes (like a dancer would have made). If it can be crossed over into your personal life....you can't take it as a legitimate business expense. And unfortunately, clothing, shoes and lingerie are all things other people need and purchase too.

 

[InTheBum]

Other than the obviously ethical reason why you should be paying your taxes (and GST)....she needs to think of it in a practical way as well.

If she doesn't declare it, she can't invest it. It's much better over the medium and long term to take the tax hit now, but then have your money appreciate over the years.

Sure....what lady doesn't want a collection of shoes, purses etc.(which could be purchased with cash) But realistically, a collection of properties is much better. She is doing herself a huge disservice if shorts out on the taxes. Not only does it prevent her from achieving a lifetime of independent wealth, spending money as quickly as she makes it solidifies horrendous spending/saving habits.

Seeing an accountant is the best way. Incorporate if you want to have additional tax benefits, or at the very least, set up a sole proprietorship. Pay your CPP, max your RRSP's and write off all the expenses you can.

Note to Sydney and other Ladies: It doesn't matter if you did decide to list yourself as an escort in your business.....you can NOT write off clothing, shoes or lingerie even if they are for work. The only possible exception may be custom costumes (like a dancer would have made). If it can be crossed over into your personal life....you can't take it as a legitimate business expense. And unfortunately, clothing, shoes and lingerie are all things other people need and purchase too.

Angel, you advice is very sound, but my GF is only a part-timer and doesn't earn a huge amount like some of the independents. She goes to school full-time and is studying nursing. So for her to max out RRSP's doesnt make sense and she is young. So spending a few thousand on clothes then another 20k on a decent car, is what she needs to just to able to function. Not to mention living and school expenses...

She charges 300 per hr and I figured she needs to have sex with approximately 150 men to get to where she wants to be... I told her I am fine with it, as long as she gets tested when done SP'ing. and once again a few months later.

 

[big_pegger]

Only declare a bare minimum of income to explain your lifestyle. ie: if you drive a modest car and don't have an extravagant home and lifestyle, you could get away with declaring an average income for your area.

Sure, people will tell you that you should declare your entire income even if it's in the low to mid 6 figures. That's bullshit. You're accepting cash that someone else already paid taxes on. They're very likely not declaring that cash as an expense, so it hasn't been deducted.

Imagine this scenario: A fine upstanding taxpayer pays $100 tax on $300 income. He pays a plumber for his services and cuts a deal to pay him a reduced rate of $300 cash without a receipt. The plumber has a guilty conscience, and declares the $300 cash as income and pays $100 tax on it. To relieve his guilty conscience even more, he goes to see an SP and pays her $300 cash for her services. That SP comes onto PERB to ask for tax advice and the entire community tells her to be honest, so she pays $100 tax on the $300 income.

Revenue Canada just got $300 in taxes from the same $300. Who's fucking who?

 

[Rodge]

You're accepting cash that someone else already paid taxes on.

Everyone is accepting cash that someone else has already paid taxes on. This is just logic. My company pays me twice a month. I get taxed on that. I visit an SP, and give her money. She gets taxed on that. She goes to the Keg and buys a steak. They get taxed on that. They pay their employees. The employees get taxed. It's a never-ending cycle, and is how the government is able to pay for the things that they determine that they (or occasionally we) need.

Declare all the money, just be wise about declaring your expenses. If you are declaring yourself as a massage therapist (if licensed), then reasonably deduct expenses that would be directly related to your role as an independent massage therapist. You are self-employed, therefore you have to spend money to continue to do business. Keep receipts for everything you buy, and if it can be related to your business, declare the expenses. If you meet a client and incur any expenses, declare them.

 

[Babushka]

Keep all your receipts such as gas receipts, cell phones bills, hotel receipts if she travels or uses hotels for incalls, etc. You can also write off a portion of your car ( 65% as I was once told is decent), parking receipts, office supplies,etc. I would advise someone not to list their occupation to CRA under "escort". Even though it is legal to do so, it automatically sends off bells and whistles to them and this could result in the beginning of an audit. Certain cash businesses like pizza places also fall under the scrutiny of the tax man so it may be best to file a sole proprietorship or incorporate a business that falls under general terms like "consulting" or "internet consulting". It is a general term but still vague enough to let it fall under whatever you want. Then go ahead a buy the most recent tax program and file. File only what has been put into the bank since this is a cash business and bank accounts will leave a paper trail. Escorts can make anywhere from $40K-100K per year ( and no not 250 K/yr!! That's absurd!) depending on how much they work. Claim something that looks decent, not too much but not too little. 50 -60 K will always look good. Build up a few tax returns for a few years and you could apply for a mortgage, car loan, etc. When I first started escorting, I had a client who was a former tax auditor. He went over everything with me and it worked out. If you have any questions, feel free to PM me.

 

[big_pegger]

Everyone is accepting cash that someone else has already paid taxes on. This is just logic.

Not everyone is accepting cash that someone else has already paid taxes on. If the spender claims it as a deductible expense, then the spender didn't pay taxes on it. Then when you spend it on something and claim it as an expense, you don't pay taxes on it.

If someone pays you cash without you giving a receipt then that person paid taxes on that cash. So logically you shouldn't have to. That's why I think it's perfectly acceptable to not pay taxes on "under the table" cash.

Not a perfect argument, but it applies in most situations.

 

[BS Detector]

Just trying to keep everyone safe from the CCRA, as I've heard from some of the girls that one of their people is a board member who is gathering information on the people here on PERB in various ways

No offense taken, just not sure what to call you this time with the handles lol. Anyway, I seriously doubt ccra has people sitting on internet boards (nice work if you can get it though lol). They probably go after certain industries, not individuals, and do sweeps periodically. A co-worker at a company I worked for a couple of years ago (I'm an industrial sales rep) said that the year before, it was that industry that was targeted. They did stuff like make sure sales people did not claim 100% of cars, other expenses were resonable according to industry standards and they asked for receipts to be sent to prove claims. Income was easy because we were issued T4 slips. For self employed people, they probably compare everyone in an industry and look for discrepacies. I always use accurate info for income and expences because it just is not worth the penalties and the hassle of trying to prove them wrong. I don't keep track of mileage though. Too much of a pain in the ass so I estimate use 65% give or take (business use) and then cliam 65% (or whatever % used) for all vehicle expenses like gas, oil, car wash, parking etc. Anything I need FOR business such as commercial plates and extra insurance, I claim 100% of that.

 

[Bellaxxx]

Angel, you advice is very sound, but my GF is only a part-timer and doesn't earn a huge amount like some of the independents. She goes to school full-time and is studying nursing. So for her to max out RRSP's doesnt make sense and she is young. So spending a few thousand on clothes then another 20k on a decent car, is what she needs to just to able to function. Not to mention living and school expenses...

She charges 300 per hr and I figured she needs to have sex with approximately 150 men to get to where she wants to be... I told her I am fine with it, as long as she gets tested when done SP'ing. and once again a few months later.

Sorry but a student does not NEED a few thousand dollars worth of clothes or a 20,000 car,

Just my 2 cents

 

[broadcaster]

Tell her to have a consultation with a proper accountant and find out exactly where she stands because trying to run a business relying on half baked internet advice is stupid at best.

 

[LonelyGhost]

For my two cents:

1. even professionals get it wrong ... ask me how I know!

2. CCRA is NOT out to get you and if they are, you will know it!

3. Declaring the income does two things: a) gives you 'income'
that you can use for borrowing money -- buy a house or condo and
that 'extra' income may make a difference ... b) gives you 'income'
for loans and investments.

4. spending the money on 'goodies' like clothes and a car is the
last reason to be doing this kind of work ... I have had lots of friends
get shitty high paying jobs and end up working for 20 years to pay off
their toys ... and most never do ... and every time they have to go
back to 'camp' and work for the wrong reasons they are more miserable
than the last time.

5. as for not investing in RRSP's ... that's the dumbest move ever ...
investing at an early age and never investing again has higher gains
than starting later and investing every year ...

If you gf just invested what she earned as an escort in cash in an rrsp
she would be way ahead of what she would earn working and paying
taxes on ... making smart investments inside an rrsp makes for
even better gains!

Having a 'quick cash' mindset has gotten more people in trouble
than you can imagine ...