theda wrote:
Question here: If theatrical costuming could be considered tax deductible, wouldn't theatrical make-up also be considered tax deductible by the same token?

Also, could some of the elaborate latex and corsetry commonly required for fetish modeling be more accurately described as theatrical costuming? I would think one would be hard pressed to consider such items everyday wear or something that could take the place of everyday wear.

Jessalyn wrote:
Could it be argued? Yes. Could it be successfully argued? Not sure. I can look for some cases and find out if I find anything specific to that genre of clothing but your tax district may treat it somewhat differently so I would consult a local CPA that understands districts within NY.

I did a few key word searches and no cases came up... I'll look more tonight when I have some free time.

Jessalyn wrote:

You know what I meant by that
(plus I said rules, not law)

I'm just giving you the business! how could I not like anyone wanting to be a CPA!

Hey - good luck with school and the CPA exam!

the Art Wraith wrote:

http://www.irs.gov/govt/fslg/article/0, … 25,00.html

http://www.irs.gov/faqs/faq-kw200.html

I can go on but any qualified preparer should know this stuff.

added... http://www.irs.gov/publications/p463/index.html

Feel free to do keyword searches at the top, everything is in there.

Agreed!

Jessalyn wrote:

Could it be argued? Yes. Could it be successfully argued? Not sure. I can look for some cases and find out if I find anything specific to that genre of clothing but your tax district may treat it somewhat differently so I would consult a local CPA that understands districts within NY.

Why do you keep talking about tax districts? Unless we are talking state (which I do not think we are because IRS is not state and that is who is being referenced) then there are NO separate tax districts. Please, help me out here!

VyL8 - Aubrey wrote:
Jessalyn, I am planning to go full time with the (mainly nude and artist) modeling soon and get my DBA and business tax ID number.  Will I be able to write off my transportation fees as a business expense? (This mainly pertains to when I travel to different cities or out of the state.)

If you incur travel expense as a necessary cost of pursuing your business venture of modeling, then yes you can deduct those expenses.  This would include airfare or gas if traveling by car, hotel expenses and meal expenses while traveling away from home.  You will need to complete a schedule C form to report the income from modeling and deduct the related expenses.

Digitoxin wrote:
Jessalyn is gone.

Sad.

She's back!!!

Lone Star Damsels wrote:

I like it too since I've been a Tax Attorney and CPA since 1991 - 12 years with KPMG.

Implants...? You may want to check with Cynthia Hess — better known as "Chesty Love - and Special Trial Judge Joan Seitz Pate of U.S. Tax Court on that one.

Clothing - all depends on what it is and what it can be used for.

Any CPA worth a damn will look at all the facts and circumstances of a specific issue before providing advice.

And no, the IRS doesn't make the rules, they issue regulations on their interpretation of the tax laws. Their regulations are not law.

Actually, properly issued regulations DO have the force of law.  Interpretations don't but usually are authoritative and frequently are deferred to by the courts.

Lone Star Damsels wrote:
Implants...? You may want to check with Cynthia Hess — better known as "Chesty Love - and Special Trial Judge Joan Seitz Pate of U.S. Tax Court on that one.

The case of Chesty Love, which I have never actually been able to read (can't find it anywhere) was because she got 10 pound impants that put her breast size at a size so large that one could argue that they had no personal aspect to them. She would not "enjoy them for personal use" because of their huge size. Someone enlarging their breasts from an A to a C or even D would not get the deduction as those are personal in nature. One cannot use the example of Chesty Love to warrant a deduction of their breast implants as she was an exception to the rule and a very large exception at that. Most women here are not getting breast implants that large. And from what I understand, she did not get a full deduction in the year they were purchased, she was able to depreciate them (not sure what the useful life was). Again, I haven't read the case I'm just repeating what I've read in other journals and my depreciation guides.

Jessalyn wrote:
Could it be argued? Yes. Could it be successfully argued? Not sure. I can look for some cases and find out if I find anything specific to that genre of clothing but your tax district may treat it somewhat differently so I would consult a local CPA that understands districts within NY.

Free at last wrote:
Why do you keep talking about tax districts? Unless we are talking state (which I do not think we are because IRS is not state and that is who is being referenced) then there are NO separate tax districts. Please, help me out here!

Tax cases may be heard in U.S. District Court (though the tax must be paid first, and then contested).

http://en.wikipedia.org/wiki/United_States_Tax_Court

http://en.wikipedia.org/wiki/United_Sta … rict_Court

Jessalyn wrote:
The case of Chesty Love, which I have never actually been able to read (can't find it anywhere) was because she got 10 pound impants that put her breast size at a size so large that one could argue that they had no personal aspect to them. She would not "enjoy them for personal use" because of their huge size. Someone enlarging their breasts from an A to a C or even D would not get the deduction as those are personal in nature. One cannot use the example of Chesty Love to warrant a deduction of their breast implants as she was an exception to the rule and a very large exception at that. Most women here are not getting breast implants that large. And from what I understand, she did not get a full deduction in the year they were purchased, she was able to depreciate them (not sure what the useful life was). Again, I haven't read the case I'm just repeating what I've read in other journals and my depreciation guides.

If you have access to Lexis the "Chesty Love" case is actually Hess v. Commissioner, T.C. Summ. Op. 1994-79.

Essentially your assessment is correct. I read a summary of the decision and the reason she won the case was because:
1. she intended to remove the implants once her career as an exotic dancer was over
2. they were intended to significantly increase her income and succeeded in doing so.
3. the implants were so large that they were useful only with respect to her business

So yes - this case is unique and others who have implants cannot assume that the tax court will rule in the same manner, especially if their implants are not as exaggerated as Chesty's.

I presume she used some form of accelerated depreciation - perhaps double declining balance

Jim P Photography wrote:
If you have access to Lexis the "Chesty Love" case is actually Hess v. Commissioner, T.C. Summ. Op. 1994-79.

I had the case information but since I'm not at the office I just logged into RIA and it's not coming up there. Hm   Either way, we agree.

Jessalyn wrote:
May as well bump as the tax threads begin.

It is definitely that time of year and it will certainly save you the trouble of posting it again.

Sannas wrote:
So somebody in here said that if you make $600 or more, I would have to pay taxes on it even though it might have been a "hobby income"/ freelance job?

All income is taxable, hobbies have nothing to do with it.  I think that they are referring to something else, a 1099-MSC form for miscellaneous income.  Whether the photographer reports income or not, you are still supposed to list it on your tax return.  If you are paid more than $600 in a single calendar year by a single photographer, he is required to report it as well using the 1099 form.

just jray wrote:
If you incur travel expense as a necessary cost of pursuing your business venture of modeling, then yes you can deduct those expenses.  This would include airfare or gas if traveling by car, hotel expenses and meal expenses while traveling away from home.  You will need to complete a schedule C form to report the income from modeling and deduct the related expenses.

You must keep detailed records and they must be kept comtemporaneously (kept as you go along, not just take a guess at the end of the year.  Use of your car can be claimed as a percentage of your total car expenses (with a lot of record keeping) or just use the IRS standard mileage rates.

Easier way to keep the record is to keep a notebook in the car and write down beginning and ending odometer readings, date and purpose for each trip.

Sannas wrote:
So somebody in here said that if you make $600 or more, I would have to pay taxes on it even though it might have been a "hobby income"/ freelance job?

"All income is taxable unless otherwise excluded in the code". There is no code that says "your income is only taxable as long as you receive a little paper telling you what you already know [how much you made]".

Moral of the story: it's all taxable whether or not you receive a 1099.

All Yours Photography wrote:

You must keep detailed records and they must be kept comtemporaneously (kept as you go along, not just take a guess at the end of the year.  Use of your car can be claimed as a percentage of your total car expenses (with a lot of record keeping) or just use the IRS standard mileage rates.

Easier way to keep the record is to keep a notebook in the car and write down beginning and ending odometer readings, date and purpose for each trip.

I have a question about this. I am keeping a detailed log in my car of start and end time, start and end mileage, current daily gas price, total miles traveled, and where I was going. That should be detailed enough.

Question: Can I deduct for travel expenses incurred from trips to the agency, trade shoots, and other events that aren't paid?

Also, how do I keep records of comp card costs, book costs, and other expenses that I find easiest to pay the agency in cash for?

Jessalyn wrote:

The case of Chesty Love, which I have never actually been able to read (can't find it anywhere) was because she got 10 pound impants that put her breast size at a size so large that one could argue that they had no personal aspect to them. She would not "enjoy them for personal use" because of their huge size. Someone enlarging their breasts from an A to a C or even D would not get the deduction as those are personal in nature. One cannot use the example of Chesty Love to warrant a deduction of their breast implants as she was an exception to the rule and a very large exception at that. Most women here are not getting breast implants that large. And from what I understand, she did not get a full deduction in the year they were purchased, she was able to depreciate them (not sure what the useful life was). Again, I haven't read the case I'm just repeating what I've read in other journals and my depreciation guides.

Believe it or not, but we actually won an appeal with the IRS (for a musician who had very specific dental work done) by citing this case.    It was the most entertaining case we ever had the opportunity to cite. 

I do believe that if you could specifically show a significant increase in income that was directly linked to receiving implants that you might stand a chance in getting at least a partial deduction, but that's purely speculation and it would be iffy.  But it would be fun to pick that fight and entertaining to see how it turned out.

S_H wrote:
Bump because it's tax season...

Wanted to add this link because another model was talking about living in one state but working in another. This link clarifies the reciprocal agreement that some states have:

http://www.payroll-taxes.com/articles/reciprocals.html

Edit: now I have a question about my own post I just looked at the form for Illinois (that is where my agency is but I live in MI) and it says to file it with your employer. However, obviously my agency is not my employer because I am considered an independent contractor.
Does anybody know who I file the form with to be exempt from IL taxes?

You file the form with whoever is giving you your check (and withholding taxes).  If you are an independent contractor, then I wouldn't expect anybody to be withholding taxes, so there isn't anyone to file the form with.

You need to talk with a tax professional to see if there is a form you need to file with the state of Illinois (it is probably part of the tax return).

A S Photography wrote:

You file the form with whoever is giving you your check (and withholding taxes).  If you are an independent contractor, then I wouldn't expect anybody to be withholding taxes, so there isn't anyone to file the form with.

You need to talk with a tax professional to see if there is a form you need to file with the state of Illinois (it is probably part of the tax return).

You would be considered a Illinois non-resident who had income from Illinois sources.  That means you should file form IL-1040 along with schedule NR.  You may or may not owe any Illinois income tax depending on how much income you had from the state.

A S Photography wrote:

You file the form with whoever is giving you your check (and withholding taxes).  If you are an independent contractor, then I wouldn't expect anybody to be withholding taxes, so there isn't anyone to file the form with.

You need to talk with a tax professional to see if there is a form you need to file with the state of Illinois (it is probably part of the tax return).

Thanks. I am actually on the phone (well on hold )with the IDOR to get some clarification right now.