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just wondering about the IRS - 11/4/2006 8:12:25 PM

dsamethyst

Posts: 91
Joined: 9/20/2004
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I know that this may seem a abit off the beaten path here...but well UMM since some of you make a living from being a Pro Domme...do you claim the amount that You charge.....In may case when i did the sessions I did i never "charged" anyone...the financial gifts i recieved were genuinely gifts...i never mentionsed the word tribute...nor expected any of the sort... I wasnt a Pro Domme...I just played one in the dungeon...

I am just wndering what you all do regarding uncle sam.... after all odds are you wouldnt get into trouble regarding what you do do for a living...but well oly the IRS could take down Al Capone!!

thanks for the input
little red

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RE: just wondering about the IRS - 11/4/2006 8:47:33 PM

MsKatHouston

Posts: 1909
Joined: 6/7/2006
From: Houston, TX
Status: offline

I am not a pro domme but I am a business owner and I have to report my income to the IRS. I would imagine most legitimate businesses make an effort to conduct their business accordingly, especially if they are in a high profile arena. Some pros are well known, therefore if they did not report income would have some serious red flags. It would also call attention if they reported they made a small annual income and drove a Lexus and had a huge home, etc.

But I would also assume, as with any other cash based business, some people try to get away with reporting as little as possible which may be easier to do for those who do not have a slew of clients or who are not as high profile. I'm sure some of the pros will chime in.

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RE: just wondering about the IRS - 11/5/2006 5:28:56 AM

DiannaVesta

Posts: 1087
Joined: 2/6/2006
From: Mid-Atlantic area
Status: offline

Theoretically you’re suppose to claim all gifts over a certain amount. No everyone does this. If I get cash gifts then I am suppose to report as income. Income is income. They don’t care as long as they get paid. Its up to her what goes down for record and what cash goes in a box. She can write off a % of her clothes, makeup, equipment, advertising, etc. It’s like any other business.

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RE: just wondering about the IRS - 11/5/2006 6:18:09 AM

MsSonnetMarwood

Posts: 1898
Joined: 2/10/2005
From: Eastern Shore, Maryland
Status: offline

A couple things I've heard from prodommes over the years:

They need to claim the income and pay taxes on it (remember that when considering session prices). For the most part, their accountants seem to be aware of the nature of their business. On the tax returns themselves, I know of one has herself listed as a computer consultant (something she's actually done in the past), another as a personal trainer (again, something she's licensed as), and another as a "elderly companion".

I think the key is that you really can't work full time as a prodomme entirely under the table, because ultimately you will probably get into trouble. You won't be able to do things like rent an apartment, apply for a car loan, have a credit card, etc if you have no income.

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RE: just wondering about the IRS - 11/5/2006 6:59:10 AM

LadyEllen

Posts: 10931
Joined: 6/30/2006
From: Stourport-England
Status: offline

In the UK, the Inland Revenue (equivalent of the IRS) are wonderful people.....

All income must be declared and tax paid on it. Thus, even if you are operating an illegal business, you must pay tax on your profits and income. We have the paradoxical position, that prostitution is illegal, but when the prostitute is arrested, the IR are involved in order to recover tax on her income. Whilst a madam running a brothel is charged with living off immoral earnings, the IR can take a share of those earnings without incurring such a charge. I find this bizarre - either those earnings are illegal, or they are not?

Before I get flamed, I do know and realise (as many here will hopefully attest), that Pro-Dommes are not prostitutes OK? But if one looks at the instance of pure prostitution, sex for payment, then its clear that a Pro-Domme, like anyone else, is held liable for tax on her earnings, whatever the official view on her profession. The IR over here have recently judged that tips to waiters/waitresses et al, is also income on which tax must be paid - I find this totally wrong, as this is my personal gift for excellent service (I dont tip everyone), not money which I intend to have taken by a government which played no part in the delivery of that excellent service.

The IR also specialises in full audits; basically they observe one's spending behaviour via electronic surveillance on card purchases, HP and credit etc to identify those living beyond their apparent means, and then require full proof of from where the money came for these purchases. We also have the proceeds of crime law here, so they either get you convicted for tax evasion and you have to pay the tax plus fines plus interest, or they take everything you have for which you cannot prove legitimate income on which tax was paid. How I love Big Brother - I realise these measures are in place to combat organised crime, but it just seems to me its the little people as usual who are targetted, to prove the effect of the department that does this sort of thing, whilst the big boys get away with it and more every day.

E

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RE: just wondering about the IRS - 11/5/2006 7:51:08 AM

MisPandora

Posts: 2911
Joined: 4/7/2004
From: Philadelphia, PA
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Most ethical folks who run a legitimate BDSM business, be it selling toys, clothing or providing professional services file taxes. This is especially true when the proprietor has a fixed space that the business is operated out of. What she calls it might be something creative.

It's really hard to justify to Uncle Sam how you managed to have a mortgage, had money coming in and out of your bank account and credit cards, and only made $10K that year, isn't it?

I'm retired as a pro. I continue to file as a business -- a self-employed consultant and educator. It's how we covered the accounting of monies that were awarded to me for my leather title and how all of it was legally documented. Filing this way allows for depreciation on my equipment, clothing and gear. All of my travel to SM events including hotel, mileage and airfare is incorporated. My car lease was also included in on the business expenses as well. A good accountant, preferably one who is SM-involved, can really be a savior in this area. I am fortunate to have a fantastic accountant who is involved in the lifestyle and he really looks out for me in terms of how I can best file each year.

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RE: just wondering about the IRS - 11/5/2006 12:31:39 PM

UtopianRanger

Posts: 3251
Status: offline

quote:

ORIGINAL: dsamethyst

I know that this may seem a abit off the beaten path here...but well UMM since some of you make a living from being a Pro Domme...do you claim the amount that You charge.....In may case when i did the sessions I did i never "charged" anyone...the financial gifts i recieved were genuinely gifts...i never mentionsed the word tribute...nor expected any of the sort... I wasnt a Pro Domme...I just played one in the dungeon...

I am just wndering what you all do regarding uncle sam.... after all odds are you wouldnt get into trouble regarding what you do do for a living...but well oly the IRS could take down Al Capone!!

thanks for the input
little red

And I'll take it down an even different path: None of you will have to worry about this in the next five to seven years, because it's my bet we will be switching to multi-tier value-added tax system and no one will escape paying taxes.

- R

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