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Thread: Tax deductibles

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    Default Tax deductibles

    I know there are threads about this & I checked them out, but I'm still left with questions.

    Can you deduct hair color, nails, & tanning? I've seen yes & no answers... I know I can deduct shoes & outfits, but can I also deduct hair extensions & makeup supplies?

    Last, I know you can deduct house fees, but can you also deduct house minimum tipouts as well as tip outs to the house mom, dj, valet, & bouncer? Thanks!!

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    Default Re: Tax deductibles

    This thread has really come up several times and all those questions are answered in excrutiating detail. Do you have an accountant?

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    Default Re: Tax deductibles

    No, I don't have an accountant. I've read that it's fine to do taxes yourself, then I've read I should get an accountant, but probably no one at H&R. I've read that you can deduct hair, nails, & tanning, but then I've read that you can't because a "housewife" could do all those things as well. As for the house fees, I 've read that you can deduct them, but I don't remember seeing (or else I just made a mistake & didn't see it) anything about deducting extra tip outs - minimum, house mom, dj, & valet tip out (since you can't document it???) So that's why I need some more details. Sorry!

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    Default Re: Tax deductibles

    My understanding from what I've read on this forum, you CAN deduct things like hair and nails and tanning... but if you get audited, they can say that those things aren't REALLY necessary expenses for your job (or, that you can't prove that you they're for the job and not for your own luxury).
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    Default Re: Tax deductibles

    ^^^ technically speaking, you can deduct ANYTHING. Whether your deductions survive an audit or not is another story !

    The sad reality is that many areas of dancer deductions fall into a gray area ... where it will boil down to the interpretation of a particular auditor as to whether some deductions are 100% legit, totally disallowed, or deductible on some percentage basis. The IRS rules are also contradictory, since in one area the code allows businesses to deduct any business expense that is 'ordinary and necessary', but another area of the code states that expenses that are also incurred by 'housewives' with no legitimate business purpose must be personal thus non-deductible as a business expense !

    In regard to deducting house fees, tipout to DJ, tipout to House Mom, tipout to bouncers etc. the answer is yes ... but ! Clearly you can deduct house fees paid to the club. In theory you can deduct tipouts to everybody else as well. But in the world of tax legalities, deducting all of these things may involve four different businesses - the club itself for stage fees - the DJ as an independent contractor - the House Mom as an independent contractor - the bouncer as an independent contractor.

    In order to take a squeaky clean deduction for the DJ, House Mom, bouncer etc., A. you must add up the amount paid out to each independent contractor separately, B. you must find out the real name, address and SS# of each of these independent contractors, and C. you must issue each of them a 1099-misc tax form at the end of the year if the total amount you paid exceeds $600 for the year. Obviously the DJ, House Mom, bouncer etc. are probably going to get very pissed off about receiving a 1099 tax form from you, which forces them to declare this income and pay taxes on it. In addition, if you are the only dancer issuing 1099's, this will probably raise a red flag with the IRS which may spread to the club, the DJ, the House Mom, the bouncer etc.

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    Default Re: Tax deductibles

    Geeeez....Well, at least I can take out the house fees...

    Okay, thank you again for all that information!!

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    Default Re: Tax deductibles

    maybe i am missing something, but I always count my gross income after housefees, meaning they don't have to be deducted...

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    Default Re: Tax deductibles

    ^^^ that's the easiest way to skirt the issue, and arguably the safest way to escape a potential audit dispute. However, doing this also reduces your reported gross income by 10%-20%, which can be a factor that affects your credit rating and/or future loan eligibility.

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    Default Re: Tax deductibles

    Theft is tax deductible, right?

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    Default Re: Tax deductibles

    Theft is tax deductible, right?
    losses due to theft are indeed a legitimate adjustment to income ... but you must be able to document the loss if audited (i.e. police report, insurance settlement etc.)

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    Default Re: Tax deductibles

    Quote Originally Posted by Melonie View Post
    losses due to theft are indeed a legitimate adjustment to income ... but you must be able to document the loss if audited (i.e. police report, insurance settlement etc.)
    Well, I'm probably not going to be able to file a police report (i have no proof and I'm a stripper - great combo) but I could get proof of income and losses from the club.

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    Default Re: Tax deductibles

    College Tuition is my major tax deductible. I do my taxes every year with HR Block, and they've never screwed me.
    Isocrates: “Democracy destroys itself because it abuses its right to freedom and equality. Because it teaches its citizens to consider audacity as a right, lawlessness as a freedom, abrasive speech as equality, and anarchy as progress.”

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    Default Re: Tax deductibles

    ^^^ My only objection to the use of 'blue collar' tax services like H&R Block, Jackson-Hewitt etc. is that the tax preparers are probably not familiar with common financial practices in the strip club industry. As long as you can provide them with a CORRECT record of income sources and a CORRECT list of legitimate tax deductions, they can grind out a decent tax return. However, unlike an accountant who IS familiar with common financial practices in the strip club industry, and who will ask questions and prompt you for deductibles that you may have overlooked, the 'blue collar' tax preparers are simply going to transcribe what you tell them. From that standpoint, you can do just as well if not better by purchasing a good tax preparation program (like TurboTax for Business for example) and entering the data yourself.


    (i have no proof and I'm a stripper - great combo) but I could get proof of income and losses from the club.
    somehow I suspect that this will be far more difficult than you envision ! Of course nothing says that you can't deduct the loss with or without hard proof. But if you are audited, proving that the loss is legitimate to the satisfaction of the auditor may be difficult.

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    Default Re: Tax deductibles

    Do you recommend just doing it yourself? I was thinking about printing out all the forms, etc....but since it is intimidating I'm thinking an accountant would be the way to go. Yet, if I could just do it all by myself & save myself money, then I much rather would. I've saved all my receipts, all my house fee receipts, & have written down all of my work log hours, earnings, etc. I also have the links to print the forms out...I guess just filling it out is what looks confusing.

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    Default Re: Tax deductibles

    ^^^ that's the reason for springing for a program like Turbo Tax ... which has enough IRS rules embedded in the programming to know which forms to use and which forms not to use depending on your individual circumstances.

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    Default Re: Tax deductibles

    Quote Originally Posted by Melonie View Post
    somehow I suspect that this will be far more difficult than you envision ! Of course nothing says that you can't deduct the loss with or without hard proof. But if you are audited, proving that the loss is legitimate to the satisfaction of the auditor may be difficult.
    Well, I filed the police report for the hell of it. I'll just use that as my proof.

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    Default Re: Tax deductibles

    ^^^ that'll work !

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