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Thread: Tax Deductions?

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    Member NewGirl9's Avatar
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    Tax Deductions?

    I've heard I can deduct stage fees, tip-outs, and costumes from my taxes... Can I also deduct personal trainer expenses? After all, it is a business expense.

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    God/dess Emily's Avatar
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    Default Re: Tax Deductions?

    you can't, because you can't show that it's used solely for work

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    Default Re: Tax Deductions?

    I think you can. I deduct house fees,costumes,my gym membership,makeup,shoes,massages,hair extensions ect.. I do not deduct dj&&bouncer tip outs. If you have a good tax person you can deduct alot. I fly across country and get to deduct 1/2 my flight.

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    God/dess Emily's Avatar
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    Default Re: Tax Deductions?

    well, just because you do deduct them, doesn't mean you can. The IRS doesn't allow you to deduct things that could be used outside of work. This is why a guy who buys an Armani suit and wears it to a business lunch can't deduct it. If what you are deducting it for is something a housewife might buy/use, you will not be able to write it off for the same reason.

    Deducting these items is very risky. If you don't mind an audit, go for it.

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    Default Re: Tax Deductions?

    If what you are deducting it for is something a housewife might buy/use, you will not be able to show it. Deducting these items is very risky. If you don't mind an audit, go for it.
    The IRS tax code itself is in conflict over 'legal' deductions for dancers. On the one hand, the code says that expenses that are 'ordinary and necessary' for conducting one's business are legitimate deductions. On the other hand, the code says that money spent on things which are of personal benefit cannot be considered as legitimate business expenses ... otherwise known as the 'housewife test'. Clearly, such expenses as costumes, stage fees etc. definitely qualify. However, personal trainers, health club memberships etc. have a whole lot of customers who are 'housewives'.

    Emily is correct on two very important matters ... A. your accountant doesn't work for the IRS, and B. the probability of being audited rises geometrically as the amount of tax deductions rises relative to declared income.

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    God/dess VenusGoddess's Avatar
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    Default Re: Tax Deductions?

    Quote Originally Posted by LOGANLAKEN
    I think you can. I deduct house fees,costumes,my gym membership,makeup,shoes,massages,hair extensions ect.. I do not deduct dj&&bouncer tip outs. If you have a good tax person you can deduct alot. I fly across country and get to deduct 1/2 my flight.
    You can deduct stage fees, costumes, make-up that is used solely for work, shoes, etc. The hair extensions, massages, gym memberships, etc are NOT deductible. You would have to PROVE (laugh here) that you would not do these things if you did not work your stripper job. I don't think you'd be able to do that.

    The things that you use solely for work are the only things you can deduct. Like Emily said, just because you've deducted it in the past and haven't been caught doesn't mean that it's not deductible. Oh, and when you get audited, they can go back as far as they want. You'll be paying penalties and interest on everything you previously deducted, but shouldn't have.

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    Default Re: Tax Deductions?

    I have not had a audit yet,and can prove each is work related.So I beg to differ in my 15 yrs of dancing.

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    Default Re: Tax Deductions?

    With all do respect to many of the opinions here - there could be case specific for personal training if the relationship is direct and specific to improving and enhancing your dancing (e.g. your profession - kind of like continuing education). The housewife test is thrown about quite frequently - commentary about the Armani suit is correct and right on - but stage related wardrobe and specific services including tip-outs (all of them) are fine (interesting question is what record keeping and potential 1099 filing requirement do you have for significant tip-outs {don't have a major gasp here over this - the penalty for failure to file 1099's is like $50 and I have never seen it asessed}).

    Proper record keeping and analysis along with competent factual support and solid theoretical work can assist a dancer in legally deducting a wide range of qualified expenses. And... on a further note, simply because deductions have been taken and no resulting audit - doesn't legitamize deductions taken - it merely means you received a free prize. And.....note the IRS has just recently finished an approximately 4 year reorganization and they have like an additional 50,000 auditors just looking for new returns to audit - so I anticipate a large swing in schedule C returns to be audited over the next few years.

    Regarding the comment about travelling for dancing - and deducting 1/2 - I don't understand. If the travel is domestic and the dancing is the primary purpose for the travel, why wouldn't you deduct all of the travel/airfare - not the non-work related vacation days expenses but the domestic (US) based travel should be fully deductible.

    Just a couple of thoughts.

    Have a great day everyone.

    Regards,

    Dan
    Daniel D. Morris, CPA
    [email protected]

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    Default Re: Tax Deductions?

    On a round trip ticket,I only can deduct the flight to work,not back to home. I dont work in the state im in. I haven't gotten a "free prize" neither,I can prove all my deductions for work. It's not "free" when Im legally paying these expenses relating to work.

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    Veteran Member TarynJolie's Avatar
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    Default Re: Tax Deductions?

    What documentation is needed to deduct stage fees ?

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    buffie06
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    Default Re: Tax Deductions?

    Every situation is different. If i was a "housewife" for 7 years before i danced and never had any of those expenses (gym, tanning, etc.) And now i have them on a regular basis, honestly to compete for $$ in my job, you bet your ass that is proof to deduct them.. But i keep and have always kept accurate records of my income and expenses.

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    Default Re: Tax Deductions?

    no, the housewife test isn't if YOU were a housewife, but if a generic housewife would buy/use it.

    if you are at the tanning salon or gym, most of the women around you are not strippers. If you are at a store that sells micro minis and 6" clear platforms, most of the women around you are strippers.

    I'm definitely more high maintenance now than before I was a dancer, but that doesn't mean that the maintenance is "proof".

    Hey, it's your money and you can do what you want with it. As self-employed workers, we are under a microscope when it comes to taxes. I'm conservative for this reason. Assuming that all your deductions are completely justified, you are still begging for an audit when you make a lot of deductions. If you are comfortable with the IRS scrutinizing your reciepts for having your nails done, have at it.

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    Veteran Member TarynJolie's Avatar
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    Default Re: Tax Deductions?

    Here is a list of 12 deductions for small business/self employment :

    http://www.bankrate.com/brm/news/biz/tax/20011022a.asp

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    Default Re: Tax Deductions?

    interesting question is what record keeping and potential 1099 filing requirement do you have for significant tip-outs {don't have a major gasp here over this - the penalty for failure to file 1099's is like $50 and I have never seen it asessed}
    this subject has always been treated as a 'Pandora's Box', because legally speaking in order to actually take a squeaky clean deduction for tip-outs to DJ's, bouncers, house moms etc. they must themselves be independent contractors not club employees, the dancer must find out their real names, addresses and SS#'s, and the dancer must issue them 1099s if the annual total is over $700 (I think).

    On the other hand, if the DJ, bouncer and/or house mom are club employees, then legally speaking any money dancers give them is a non-deductible charitable gift ! After all, a club cannot legally force an independent contractor dancer to hand over money to club employees, and a dancer can't legally generate a 1099 for any money paid out to club employees. Therefore, legally speaking, a dancer giving an employee DJ, bouncer or house mom money is a voluntary act on the dancer's part, and is therefore not a legitimate business expense tax deduction.

    Granted, the actual practice in regard to reporting these tipouts and taking business expense tax deductions for these tipouts, and the actual practice in regard to issuance of 1099's, is way different than what the letter of the law calls for. In the past, most dancers have simply considered the amount of money they actually walk out of the club with at the end of the night as their 'income', with tipouts taken off the top and not separately accounted for.

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    Default Re: Tax Deductions?

    Quote Originally Posted by Melonie
    On the other hand, if the DJ, bouncer and/or house mom are club employees, then legally speaking any money dancers give them is a non-deductible charitable gift ! After all, a club cannot legally force an independent contractor dancer to hand over money to club employees, and a dancer can't legally generate a 1099 for any money paid out to club employees. Therefore, legally speaking, a dancer giving an employee DJ, bouncer or house mom money is a voluntary act on the dancer's part, and is therefore not a legitimate business expense tax deduction.
    Interesting ... The contract I signed to work in the club states that I do not have to tip the DJ. But it is highly frowned upon if I do not tip him at least 10%.

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    Default Re: Tax Deductions?

    Interesting ... The contract I signed to work in the club states that I do not have to tip the DJ. But it is highly frowned upon if I do not tip him at least 10%.
    And herein lies the 'Pandora's Box' aspect. If you attempted to specifically claim tipouts to the DJ on your tax return, if you were audited by a real IRS stickler, and if the IRS stickler followed up on your attempted deduction by trying to match up the same amount you deducted with reported income by the club or by the DJ, there's a 99.999% chance that no matching income was reported. To the IRS stickler, this either means that you are 'lying' about paying the money to the DJ, or the club or the DJ are not reporting all of their 'income' to the IRS. Either way it's going to mean tax trouble for somebody !

    The blurb put into your 'contract' by some very shrewd accountant guarantees that, if the above situation should ever develop, that legally speaking any tipouts paid to the DJ by dancers in your club were voluntary ... thus not a 'necessary' business expense ... thus not tax deductible by the dancer ... but most importantly from the club's standpoint not reportable income for the club !

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    Default Re: Tax Deductions?

    Quote Originally Posted by LOGANLAKEN
    On a round trip ticket,I only can deduct the flight to work,not back to home. I dont work in the state im in. I haven't gotten a "free prize" neither,I can prove all my deductions for work. It's not "free" when Im legally paying these expenses relating to work.
    Are you sure? If I am not mistaken, you are able to deduct ALL fees which are incured for work purposes (flying/driving to/from any place for work). You may not be flying home to work in your home state, but that is a result of you flying OUT to work.

    Well, you need to do what you are comfortable doing. I tanned, had my hair cut/styled, pedi/mani, "spa days" AND used a gym membership BEFORE I started dancing. So, I wouldn't be able to say, "Oh, I only do it for work." Simply because just by "peeking" at my bank accounts or credit cards, they would be able to see that at least I did those things before becoming a dancer. I do think that they are going to be more discriminating when looking over deductions. I find it ironic that you will not "write off" your full travel expenses, but you will write off your gym membership, hair, nails, and other stuff. But, to each their own.

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    Default Re: Tax Deductions?

    If I am not mistaken, you are able to deduct ALL fees which are incured for work purposes (flying/driving to/from any place for work). You may not be flying home to work in your home state, but that is a result of you flying OUT to work
    Based on the results of a recent IRS audit of one of my friends, the current IRS position on the deductibility of business travel appears to be as follows -

    All business travel is deductible as a business expense providing you can show a hotel receipt for an overnight stay, providing you can show earned income from the business trip, and providing that the travel distance involved was sufficiently far away from your home address to make commuting from home impractical (the distance was not specifically stated by the auditor, but the impression was at least 100 miles / 2 hours travel time based on what the auditor allowed and disallowed).

    I tanned, had my hair cut/styled, pedi/mani, "spa days" AND used a gym membership BEFORE I started dancing
    based on my friend's audit results, the auditor allowed 50% of the amounts spent on these sort of things (i.e. which fail the 'housewife test') to be taken as a business expense tax deduction, but did not allow the other 50% on the basis that they were also of 'personal' benefit. This point came up because my friend attempted to write off 100% of the cost of purchasing her own tanning bed as a business expense.

    disclaimer : this was one individual auditor's position re one specific taxpayer, and does not necessarily indicate that another auditor would reach the same decisions for a different taxpayer.
    ~
    Last edited by Melonie; 11-20-2005 at 08:07 AM.

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    Default Re: Tax Deductions?

    how about gas can that be deducted?

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    Default Re: Tax Deductions?

    what about boobs?

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    Default Re: Tax Deductions?

    Quote Originally Posted by phoenix01
    how about gas can that be deducted?
    It's all rolled into the cost of commuting...or mileage that they allow you to deduct. As I understand it, you cannot deduct the cost of commuting if you go to the "same" home club every time you work...but I could be wrong...

    Quote Originally Posted by phoenix01
    how about boobs?
    Only if they are bigger than (I believe) what the average housewife gets (over 1,000 cc's).

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    Default Re: Tax Deductions?

    how about gas can that be deducted?
    The IRS allows you to either deduct the actual cost of gas + car maintenance, or to deduct a standard rate of I think 46 cents per mile of business travel.

    As I understand it, you cannot deduct the cost of commuting if you go to the "same" home club every time you work...but I could be wrong...
    The IRS does NOT allow the trip from one's home to one's local place of business (less than 100 miles), or the return trip, as business expense deductions. However, if other travel is required, the additional travel IS deductible. The typical example is a salesman, who cannot deduct the trip from his home to his office and home again at night, but who CAN deduct the cost of travelling from his office to various customer locations all day long, then back to his office near the end of the day.


    what about boobs?
    Boob jobs for dancers are a special case under the law. Several years ago US congress passed a law which categorized all plastic surgery considered to be 'elective' (i.e. choosing to have your boobs done not medically necessitated by breast cancer) as being of personal benefit only - thus NOT tax deductible as a business expense. This applies across the board to nose jobs, boob jobs, lipo etc. However, soon after this law was passed, a big boobs feature girl named Cynthia Hess (a.k.a. Chesty Love) succeeded in convincing the court that because her breast implants were SO big that they caused physical discomfort and/or public ridicule in everyday situations that the court must concede the only reason she got them was for business. The court agreed and allowed her deduction, and the 'letter ruling' precedent applies to other girls in a similar situation. Therefore, if you get professional sized implants (over 1000cc) and you work in a profession where bigger tits means bigger tips, you CAN deduct the cost of your boob job as a business expense.

  23. #23
    Crissychan
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    Default Re: Tax Deductions?

    I know we can have a home office deduction, if I spend lets say 2hrs a day researching music & costumes and e-mailing customer... would I be able to write off even a small amount of my rent?

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    Default Re: Tax Deductions?

    ^ I don't believe so. Your home office has to be used a certain amount of time per day, etc to qualify. You also cannot use it for personal use. This is what I understood, anyways.

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    Default Re: Tax Deductions?

    Quote Originally Posted by Crissychan
    I know we can have a home office deduction, if I spend lets say 2hrs a day researching music & costumes and e-mailing customer... would I be able to write off even a small amount of my rent?
    The IRS is VERY picky on this topic and the popular perception is false. This is also one of the primary things which can be an automatic audit-trigger.
    According to an IRS tax topic from this year you are skating on thin ice. See http://www.irs.gov/newsroom/article/...108138,00.html
    Whether you are self-employed or an employee, if you use a portion of your home exclusively and regularly for business purposes, you may be able to take a home office deduction.

    You can deduct certain expenses if your home office is the principal place where your trade or business is conducted or where you meet and deal with clients or patients in the course of your business. If you use a separate structure not attached to your home for an exclusive and regular part of your business, you can deduct expenses related to it.

    Your home office will qualify as your principal place of business if you use it exclusively and regularly for the administrative or management activities associated with your trade or business. There must be no other fixed place where you conduct substantial administrative or management activities. If you use both your home and other locations regularly in your business, you must determine which location is your principle place of business, based on the relative importance of the activities performed at each location. If the relative importance factor doesn't determine your principle place of business, you can also consider the time spent at each location.

    If you are an employee, you have additional requirements to meet. You cannot take the home office deduction unless the business use of your home is for the convenience of your employer. Also, you cannot take deductions for space you are renting to your employer.
    The 2-hour rule seems to be a tax-legend.

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