[Readings] The Oldest Deduction,

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[Readings]

The Oldest Deduction

Adjust

From “Tax Tips,” in the September 1991 issue of Whorezine, a monthly for “sex industry workers” published in San Francisco.

The advantage of Uncle Sam and legitimize your business at Uncle Sam’s expense. On Schedule C of the 1040 federal income tax form, list your work as massage, escort service, modeling, or something similar. By filing legitimately, you can also provide invoices for services rendered to those clients who might be able to take a tax deduction for “entertainment” or “massage” services on their business expense accounts—a nice selling point!

Estimated Taxes
You need to estimate your “net income” for the calendar year. You then need to make quarterly payments to both the IRS and the Franchise Tax Board. These estimated tax payments are then applied to whatever taxes you owe when you file your returns in April.
Expenses
Internal Revenue Code Section 162 deals with “ordinary and necessary” business expenses. As long as expenditures are “ordinary and necessary” and relate to your income-producing work, they are deductible. Thus, you should deduct the cost of: condoms, lube, clothing used just for work, floggers, slings, cab fares, public transportation, and auto/motorcycle expenses (you need to maintain a log of business-usage mileage).
Retirement Savings
Don’t count on Social Security to take care of you when you retire. Set up your own retirement plan with some of your earnings and get a current tax deduction to boot. You can set up an Individual Retirement Account (IRA) or, as a self-employed person, a Keogh plan. Be careful how you invest these funds—they’re your retirement monies. Invest wisely. Get professional help if you need it.