Does a sugar baby pay taxes? Isn't the income a gift? I tried looking this up but didn't find much. If there is a thread please inform me. But what's the right thing to do?
Does a sugar baby pay taxes? Isn't the income a gift? I tried looking this up but didn't find much. If there is a thread please inform me. But what's the right thing to do?


I believe the income from a sugar daddy would be considered a gift. So, no taxes to be paid.






How rich is he?
If he's super loaded and has an accountant he actually has to pay taxes on the gift himself, because you have to declare giving money or property away. My parents gave my brother money to buy a house and had to declare it, that's what I'm basing this on. They had to get an accountant and file some tax thing if it's over a certain amount.
If he is paying you in cash and you aren't putting a lot of it in the bank, you should be okay.
thank youuuuuuuu!



Am sure one of the financial people on here will know for sure but believe if amount exceeds $10,000 in calendar year then you are supposed to claim it. If you consider it for services rendered(dinner, companionship, etc) then would probably be considered income and technically taxable.


I'm not currently seeing anyone, I'm just interested in doing this.
I was thinking about this. I mean I don't want to if i don't have to of course but even if we're getting technical I still don't wouldn't want to ever be in any trouble or anything.


if you are having sex for money, its illegal. why would you pay taxes on an illegal job? do you see pot dealers paying taxes on their income? lol...


let me have my joke dammit.



You don't have to claim taxes on any amount of money he gives you unless it's a VERY large amount (5 million for 2011) stocks/real estate/something that produces income- then you have to claim that income after the gift. But only he has to pay taxes on it if it was over $13,000.





Yes, the way I understand it, it is a gift and up til a certain amount in the 6 digits, then you do have to pay taxes on it. Otherwise, its up to him as the gift giver to pay taxes on the amount he gives you.
This is *not* income....being a sugarbaby isnt a job. We only relate it as such because of the type of work we do, but in lay mans terms, its no different than having a boyfriend who gives you money...if a bf gives you money to pay your rent or spending money would you tell the IRS? Of course not. Now if he gave you $20k to put down on a house, then yes...you would have to report that gift. My guess is, if a guy has $20k laying around to hand over, hes already pretty aware of finances and taxes and knows what the deal is.
Only things are for major purchases, like a car, house, etc...just like when you win a contest, you are responsible for the taxes on big ticket items. Again, its not job income, its a taxable gift.
More than anything, talk to a tax accountant. Id guess especially in big cities like Miami/NY/LA tax consultants would be pretty used to the "kept woman" more so than small towns, but getting an advice from a professional is the way to go when/if you find yourself in that situation.







Heres a link to irs.gov about gift taxes...
http://www.irs.gov/businesses/small/...108139,00.html
Read some more on TurboTax and realized that Im wrong about having to pay taxes on gifts at all!The recipient may choose to pay the taxes for the gift giver if the amount is over $13,000, but they dont have to, and its not their responsibility to.
http://turbotax.intuit.com/tax-tools.../INF12036.htmlyou can give up to the annual exclusion amount ($13,000 in 2010 and 2011) to any number of people every year, without facing any gift taxes. Recipients never owe income tax on the gifts.(...)The federal gift tax exists for one reason: to prevent citizens from avoiding the federal estate tax by giving away their money before they die.
The gift tax is perhaps the most misunderstood of all taxes. When it comes into play, this tax is owed by the giver of the gift, not the recipient.
Really though, being a sugarbaby/girlfriend doesnt become a job because money is involved...if a boyfriend / lover gives his girl money, its not a fee its a gift, and thats what the IRS treats it as.





There is IRS precedent for situations involving 'rich' gentlemen bestowing generous 'gifts' upon attractive and accomodating young women being interpreted as 'payment for services rendered'. As such, every dollar received ( or equivalent dollar value of gift items / perks ) by the attractive and accomodating young woman can potentially be treated as taxable income upon which income taxes can be collected.





That doesnt make sense? The IRS will make a sugarbaby pay taxes if shes young and attractive? What if shes older then? Or not attractive?
Everything Ive been able to find corresponds with the link from irs.gov that I posted... That the gift giver is responsible for anything over $13k. I havnt found any clauses for if the person is person getting the gift is young and pretty and/or the gift giver is considered rich........


















What Melonie is trying to say , is there is a clause for 'pretty woman milking rich men ' IE sugar babies ! Not all the babies are pretty , not all the daddy's are rich , it was a sweeping generalization , but we know what she means !!! Or at least , I do :0-)
Sure , pretend it's a generous friend of your great uncle who just likes to lavish you with money , but if it gets proved ( and by that I mean , if in their eyes, there's enough evidence to make them believe this is said set up ) There could be trouble .
I know in the UK - Big gifts are taxable, else we'd all be giving the mechanic/chimney sweep/milkmen regular gifts, and they would be doing us regular favors :-P No one would pay tax , and the country would grind to a halt .
Anyone making enough to be living a comfortable life style, and not paying their taxes, has an immediate red flat to the Tax office - because they want to know , where that money came from !
@ crispy - Most savvy criminals , who earn any substantial amount of money , be it through selling their bodies, selling drugs , etc ... Will indeed pay tax- on a cover job , the very reason being to avoid the unwanted attention from the tax office ! Put it this way , you can't drive a Porsche , and expect to go unnoticed .
We have a couple of high earning pot dealers in our area - Both make a lot of $$ selling weed.... But one is an 'electrician ' and the other 'a roofer' . High earnings have to be declared to avoid trouble . Expenses have to be realistic , to avoid trouble ..... Common sense needs to be exerted to avoid trouble ! ... Something a few of our politicians could have done with knowing last year !!
Missy




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