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Thread: Hotels as a tax deduction

  1. #1
    Moderator Miss_McKenna's Avatar
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    Search Hotels as a tax deduction

    I always thought that for escorts, hotels would be a deductible business expense, but I recently read a post on her that you can only claim hotels if they are more than 50 miles from your house or something. Is this true? I don't/can't use my own home as an in-call so I book a room in a hotel, but now I'm wondering if I'll actually be able to claim it. I can understand not being able to claim it as lodgings seeing as I live in the same city, but isn't it the same as a massage therapist having to rent studio room, or even someone renting an office?

    If I can't deduct it, would it generally be considered ok for me to declare my income as the rate that I earned minus the hotel costs? For example, to claim my income as $400, from a $500 appointment in a $100 hotel?

    Thanks!!!


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    Banned Melonie's Avatar
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    Default Re: Hotels as a tax deduction

    The reference you read related to the deductibility of hotel expenses for a travelling dancer ( or salesperson or representative ) ... where the hotel room is not a direct ingredient in conducting their business / earning income. Indeed in that scenario, the IRS will generally disallow hotel expenses if the distance between the hotel and their home address is 'short' enough to be considered as a reasonable commute. There's some debate as to what the IRS considers to be a reasonable commute, with 100 miles or 2 hours travel time generally being considered as 'safe'.

    While I don't know about any specific precedent in regard to hotel rooms and escorts, there is some precedent for other types of businesses where the availability if the hotel room is a necessary part of conducting business / earning money. A few examples would be job fair interviews, scrap gold buyers, etc. While I'm certainly not an attorney, accountant, or anything except a dumb blonde with big boobs, there does seem to be a 'logical extension'.

    would it generally be considered ok for me to declare my income as the rate that I earned minus the hotel costs?
    Technically speaking, no.

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    God/dess Zofia's Avatar
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    Default Re: Hotels as a tax deduction

    Quote Originally Posted by Miss_McKenna View Post
    If I can't deduct it, would it generally be considered ok for me to declare my income as the rate that I earned minus the hotel costs? For example, to claim my income as $400, from a $500 appointment in a $100 hotel?

    Thanks!!!
    No. The correct way to handle that is report your income in full as you had complete dominion and control over it and report a corresponding expense for short term rental. I cannot point to any letter ruling, let alone a court decision on escorts renting hotel rooms. I would have no problem defending an audit where an escort offering incall deducted the cost of a hotel room or even an apartment that she used exclusively for customers. Now, it's a different issue if you are trying to use the home office deduction. One, I think the home office deduction is an invitation to an audit and two, I think it would be very difficult to defend the cost of your spare bedroom if you were doing incall from your home. (Three, it's incredibly unsafe. If I worked for the IRS, I'd disallow the deduction just to get you to use a hotel.)

    HTH
    Z

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