the tax man! - GoFuckYourself.com

T[H]C · 07-31-2002, 11:44 PM

hey guys, im new at the porn game. after a hell of alot of reading and research plus tons of trial and error im starting to make a little money. nothing compared to most of you, just a few hundred a month right now.

now, im wondering whats going to happen when tax time comes. i am interested in paying my taxes, but i want to make it as painless as possible. do you have any tips and suggestions that might help me out in the future? thanks!

ldinternet · 07-31-2002, 11:45 PM

Which country are you in?

T[H]C · 07-31-2002, 11:46 PM

heh, yea...guess that would help. united states

T[H]C · 08-02-2002, 02:35 AM

can i write off hosting cost and content cost?

B40 · 08-02-2002, 02:36 AM

Quote:

Originally posted by T[H]C
can i write off hosting cost and content cost?

Of course they're buiz expenses.

Joe Sixpack · 08-02-2002, 02:44 AM

Quote:

Originally posted by T[H]C
can i write off hosting cost and content cost?

MMmmmmmmm..... THC.....

And no... weed isn't a work related expense. Damn.

Jak · 08-02-2002, 02:51 AM

Take the money you are earning now and find yourself two things...

A lawyer.

An accountant.

This will serve two purposes. The first is obvious. You'll get answers to things when you need them, including the tax stuff. The second is not so obvious but it is true... when you have a lawyer and an accountant, you are a business man. That weighs heavy (in a good way) on your thought processes, and will serve you well.

Good luck.

Jak

CoolE · 08-02-2002, 03:01 AM

It's really very simple... you take all your revenue you made from online porn, subtract all the expenses you incurred in making that revenue, and the difference is the income you made. You declare that income on your income tax forms. In Canada, there is an "Other Income" box where that goes; I'm sure the USA has an equivalent. That is Income Tax 101.

It's a bit more complicated when it comes to the purchase of assetts such as computers and content licenses - you need to depreciate that shit, rather than simply declare it as an expense. That's where you need to do some reading or hire an accountant. And that is Income Tax 201.

Don't forget to count all your "business use of home" expenses. So if your home office is 12% of your home's floorspace, you should be able to justify 12% of all of this as legitimate business expenses:
- home owners insurance
- mortgage interest
- heat, electricity, water and other utilities
- the maid (if you got one)
- and well, you get the idea - all reasonable home expenses.

Also don't forget to include a portion of your intenet connection costs and phone bills as expenses. Just estimate how much of each was business related vs personal.

You don't ever really want to cheat by failing to declare any revenue; unless you have really big balls. I'm not sure what it is like in the US, but in Canada, the Customs and Revenue Agency can access your bank records without a court order or anything. All they need to do is write a letter. Which means taxpayers have fewer rights than murderers up here. But that is probably not news to the rest of you who live in this tax-loving country.

And for people running part-time businesses one of the first things that Customs and Revenue Canada likes to do when they audit you, is look at your bank records and compare all your deposits to your revenue to make sure the two match closely. I'm going through this right now - and thank God I am clean and everything adds up.

B40 · 08-02-2002, 04:06 AM

Quote:

Originally posted by CoolE
It's really very simple... you take all your revenue you made from online porn, subtract all the expenses you incurred in making that revenue, and the difference is the income you made.

Not that simple. There's a whole bunch of other things that can and can't be included. For example you can write off 50% of meal and entertainment expenses.

Also when buying computers or software you can write off the appropriate CCA rate each year.

It's different for US but if you need help with Canadian taxes, let me know.

ICQ 34763846

Amputate Your Head · 08-02-2002, 04:08 AM

a c c o u n t a n t.

Raven · 08-02-2002, 04:25 AM

You're getting some great advice.

Make sure, if you are earning enough money to have to report the income, that, you have a business license.

As you increase your earnings, think about incorporation.

Definitely go see a tax preparer or accountant and not H and R Block.

Keep careful and precise records.

Good luck to you.

PersianKitty · 08-02-2002, 04:49 AM

IRS EZ-EST Tax form

1. How much did you make last year? $__________

2. Send it to us.

TheFLY · 08-02-2002, 05:07 AM

When the tax man comes to take everything you own -- you throw up your hands and say, "Sorry I spent all my money on lap dances."

Pornwolf · 08-02-2002, 06:10 AM

Quote:

Originally posted by PersianKitty
IRS EZ-EST Tax form

1. How much did you make last year? $__________

2. Send it to us.

So true... So true! A freind of mine had a bad year in 1995. I basically supported him and the IRS still sent him a letter (4 years later) saying we estimate you owe us $39,000!?!? He made $0 that year!

CoolE · 08-02-2002, 06:38 AM

Quote:

Originally posted by B40

Not that simple. There's a whole bunch of other things that can and can't be included. For example you can write off 50% of meal and entertainment expenses.

I think you are complicating things. This person said he makes a few hundred a month. How many lunches with porn stars do you think he has had?

Like I said before, just add up all your expenses and all your revenue checks. Then read through one of the government handbooks on how to depreciate your few assetts (like computers and content) and do that, and you are set.

cosis · 08-02-2002, 07:02 AM

This is the first year I have made a good sizable income from the porn biz.. I have been keeping track of income earned and business expenses.. To some of you who may already do this,
is it better to hire an accountant now instead of waiting until the year is over?

I do not really have a problem with waiting until the end of the year if I keep all my records on file....

07-31-2002, 11:44 PM	#1
T[H]C Confirmed User Join Date: Jul 2002 Location: Tempe, AZ Posts: 162	the tax man! hey guys, im new at the porn game. after a hell of alot of reading and research plus tons of trial and error im starting to make a little money. nothing compared to most of you, just a few hundred a month right now. now, im wondering whats going to happen when tax time comes. i am interested in paying my taxes, but i want to make it as painless as possible. do you have any tips and suggestions that might help me out in the future? thanks!

08-02-2002, 04:08 AM	#10
Amputate Your Head There can be only one Industry Role: Join Date: Aug 2001 Location: Somewhere else Posts: 39,075	a c c o u n t a n t. __________________ SIG TOO BIG

08-02-2002, 04:25 AM	#11
Raven Confirmed User Industry Role: Join Date: Jul 2001 Posts: 6,874	You're getting some great advice. Make sure, if you are earning enough money to have to report the income, that, you have a business license. As you increase your earnings, think about incorporation. Definitely go see a tax preparer or accountant and not H and R Block. Keep careful and precise records. Good luck to you. __________________ Raven ~RETIRED~

07-31-2002, 11:45 PM	#2
ldinternet Confirmed User Join Date: Apr 2001 Posts: 8,245	Which country are you in?

07-31-2002, 11:46 PM	#3
T[H]C Confirmed User Join Date: Jul 2002 Location: Tempe, AZ Posts: 162	heh, yea...guess that would help. united states

08-02-2002, 02:35 AM	#4
T[H]C Confirmed User Join Date: Jul 2002 Location: Tempe, AZ Posts: 162	can i write off hosting cost and content cost?

08-02-2002, 02:51 AM	#7
Jak So Fucking Banned Join Date: Apr 2002 Location: ripenedpeach.com Posts: 1,143	Take the money you are earning now and find yourself two things... A lawyer. An accountant. This will serve two purposes. The first is obvious. You'll get answers to things when you need them, including the tax stuff. The second is not so obvious but it is true... when you have a lawyer and an accountant, you are a business man. That weighs heavy (in a good way) on your thought processes, and will serve you well. Good luck. Jak

08-02-2002, 03:01 AM	#8
CoolE Confirmed User Join Date: Jul 2002 Location: Canada Posts: 451	It's really very simple... you take all your revenue you made from online porn, subtract all the expenses you incurred in making that revenue, and the difference is the income you made. You declare that income on your income tax forms. In Canada, there is an "Other Income" box where that goes; I'm sure the USA has an equivalent. That is Income Tax 101. It's a bit more complicated when it comes to the purchase of assetts such as computers and content licenses - you need to depreciate that shit, rather than simply declare it as an expense. That's where you need to do some reading or hire an accountant. And that is Income Tax 201. Don't forget to count all your "business use of home" expenses. So if your home office is 12% of your home's floorspace, you should be able to justify 12% of all of this as legitimate business expenses: - home owners insurance - mortgage interest - heat, electricity, water and other utilities - the maid (if you got one) - and well, you get the idea - all reasonable home expenses. Also don't forget to include a portion of your intenet connection costs and phone bills as expenses. Just estimate how much of each was business related vs personal. You don't ever really want to cheat by failing to declare any revenue; unless you have really big balls. I'm not sure what it is like in the US, but in Canada, the Customs and Revenue Agency can access your bank records without a court order or anything. All they need to do is write a letter. Which means taxpayers have fewer rights than murderers up here. But that is probably not news to the rest of you who live in this tax-loving country. And for people running part-time businesses one of the first things that Customs and Revenue Canada likes to do when they audit you, is look at your bank records and compare all your deposits to your revenue to make sure the two match closely. I'm going through this right now - and thank God I am clean and everything adds up.

08-02-2002, 04:49 AM	#12
PersianKitty Meow Media Inc. Industry Role: Join Date: Jul 2001 Location: In the valley of the sun, cactus, tacos, tequila, and nod Posts: 7,785	IRS EZ-EST Tax form 1. How much did you make last year? $__________ 2. Send it to us.

08-02-2002, 05:07 AM	#13
TheFLY So Fucking Banned Join Date: Jan 2001 Location: http://www.thefly.net/ --- Quit your job and live off steady traffic. Posts: 11,856	When the tax man comes to take everything you own -- you throw up your hands and say, "Sorry I spent all my money on lap dances."

08-02-2002, 07:02 AM	#16
cosis Confirmed User Industry Role: Join Date: Aug 2001 Location: Beach Posts: 5,281	This is the first year I have made a good sizable income from the porn biz.. I have been keeping track of income earned and business expenses.. To some of you who may already do this, is it better to hire an accountant now instead of waiting until the year is over? I do not really have a problem with waiting until the end of the year if I keep all my records on file....