web cam actress new client

[jshtax]

Had a client come in today that is a model/web cam actress(internet porn). What do you guys as a group think would qualify as ordinary, necessary and reasonable?

[ILLMAS]

None of us here know what you are talking about.  

[rfassett]

I am not sure what your qualifiers have to do with this - she is a model/actress with income and expenses like any other model/actress with income and expenses. With a son in the entertainment business, I can tell you that there are a lot more expenses than income for those that are still struggling to make it. I think you use the same criteria for ordinary and necessary as you do any other business. Obviously, state of the art computer and web cam and high speed internet should fit the bill. Make up would also fit the bill. Training, either in the use of the technology or acting, I would think would be deductible if it is used to keep her skills polished. My point is - lose the qualifier and treat her like any other model/actress.

Now, all that said, personally I would have to invite her to have someone else do her tax work. But that is just me. And I would do that for all of the same reasons I fired a strip joint that I inherited in a practice I bought some years back.

[Abby Normal]

Ha ha. The personal use %s should be fun.

[jshtax]

She was referencing props and red room of pain type items so yes there are certain qualifiers you can not avoid. If she does an S&M show how could one say those items are not business in nature. What is a personal to one person might not be to another. 

[jklcpa]

Adding to Ron's post, consider deducting costumes, props, a portion of internet access, supplies.  Treat this like any other business, explain to her about expenses needing to be ordinary and necessary, and have her give you a list of expenses that she can document. I'd treat her like any other client, and if I couldn't then I wouldn't have the person as a client.

[MsTabbyKats]

And don't forget "safety equipment".

[michaelmars]

are you getting a fee, or doing this on barter?  Inquiring minds want to know.

[BulldogTom]

are you getting a fee, or doing this on barter?  Inquiring minds want to know.     <<<room of pain type items>>>>

 

With the "equipment" he listed, I would hope he is not bartering, but to each their own.

 

Tom

Newark, CA

[RitaB]

With the "equipment" he listed, I would hope he is not bartering, but to each their own.

 

Tom

Newark, CA

 

Yes. pain is overrated.  In God we trust, all others pay cash. 

[Lion EA]

As long as it's not suitable to be worn on the street....

[Jack from Ohio]

As long as it's not suitable to be worn on the street....

That is dependent upon the 3 L's.  Location Location Location

[JohnH]

^{Don't come back here telling us you had to do some "internet research" to better acquaint yourself with what constitutes ordinary and necessary business expenses for this client.}

[Lion EA]

Are you married, JSH?  Is your wife a tax preparer?  Maybe this should be HER client !!

[Eric]

Don't come back here telling us you had to do some "internet research" to better acquaint yourself with what constitutes ordinary and necessary business expenses for this client.

 

:lol:

[RitaB]

^{Don't come back here telling us you had to do some "internet research" to better acquaint yourself with what constitutes ordinary and necessary business expenses for this client.}

This reminds me of when another preparer asked me to do a return for her because she was on vacation. The taxpayer was in the business of selling sex toys. Preparer said to me, "Do NOT look at her website or you will have to scrub your brain."

Edited February 28, 2015 by RitaB

[joanmcq]

Contrary to Ron's post, the cam girls I know make bank. The red room sounds like a dedicated home office, she'll have merchant fees (all credit card biz; in more is easily traced), utilities, costumes, props as others have said. Also website, and possibly commissions paid if she is funneled business from another site.

[jshtax]

FYI she grossed $175K last year. 

[RitaB]

FYI she grossed $175K last year. 

 

Holy web cam, Batman.  Or, Cat Woman.

[BulldogTom]

Holy web cam, Batman.  Or, Cat Woman.

You are in the wrong business Rita.  That is a lot of tax returns right there.

 

Didn't Haley Berry wear skin tight leather and carry a whip in Batman?  Just saying - she made a lot of money for that too!

 

Seems like leather and "pain toys" are more profitable than anything I can do to earn a living.  Not my thing, but definitely a money maker.

 

Tom

Newark, CA