I have several clients who are adult entertainers/performers. You don't need to hire an accountant necessarily, but you do have to realize you are a self employed person and are running your own business. If you are willing to learn what it takes to comply with all the aspects of running a business then by all means DIY. In most cases I would say to do what you know & enjoy and let somone else handle what they know.
Consider that your "business" was landscaping...or whtever else. You have income from that Biz...and lots of expenses. From a bookeeping point of view you are always trying to make your taxable (net) income as low as possible. Whether you do that legally/honestly/ethically is up to your own personal standards.
I always tell my clients I only want to know about the income that is going on their tax return (hopefully...that is 100% of what they receive...but again....their choice)
I have them set up a bank account with a debit card and I ask them to make regular deposits to that account after every day they work. Whatever they deposit into that account is what I report as revenue on their schedule "C". Sure...they may be earning more than that amount but I encourage them to show as much of their income as possible.
On the expense side....I see no problem with being fairly aggressive on taking deductions. I have them use their debit card for all of their business expenses. Costumes...of course I deduct them. These are not things you would wear anywhere else. Make-up, Haircare, Nails, healthclub membership, dance lessons, etc I would usually pro-rate 50-50%. Cell phone, pager, website, ofice expences, professional fees (lawyer, accountant, etc.) Driving to your usual place of employment is not deductible, however for other appearences at other locations (private parties?) you can take a mileage deduction. If you pay a DJ, driver, etc.
I encourage my clients to make investments: mutual funds, real estate, etc. The income shown on your return is usually high enough to qualify for mortgages on income producing property and since you are depositing large amounts of cash the down payments will not cause you any problems.
It all comes down to how honest you want to be. If you choose to not report any income you will eventually be caught...no doubt about it. There are ways to avoid a paper-trail......for a while but who wants to live that way. And the penalties when you get caught are very big. If you "under-report" your income you can usually get away with it for a while too. If you make $100K and report $90K it will be almost impossible for the IRS to "prove".....but I still don't recommend it. I would rather have you put the full $100K on your tax return and then take all of the deductions you are legally entitled to to bring your income down to $50K and then pay the tax on it like everyone else does.
This is a LEGAL business....why turn it illegal by not fully reporting your income?
A lot of my clients pay me in cash. They always get a receipt so they can deduct my fees. I always report the income on my return so I'm legal too.


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