Prostitute client??

[fliszt]

Here's one for the board -- I truely had a client yesterday that made AND is REPORTING $2,000 in cash as income. I asked her for her offsetting expenses. She said the supplies were $200 and "tools" were $250. I asked what "title" should I use for her business and she said "Prostitute". My mouth dropped open and I just stared at her. She kind of giggled and said oh, just put down house cleaning. I inquired about other expenses a "house cleaner" would have -- maybe some auto expense? She said no, the houses she cleans are very close to where she lives. Ok. Well, I didn't inquire as to what the "tools" were. So I finished her return and efiled it. Well, I suppose in these hard times, everyone has to eat.
My wife and I just laughed ourselves silly last nite when I told her about my 9;00 am client.
Hope you all get a kick out of it too.
I'm now DONE!!
Larry

[Gretel]

I guess my mouth would have dropped open too. What is so funny about this? I think you had a very honest taxpayer, what cannot be said by many.

[ChEAr$]

"House cleaning"?

More like clock cleaning.

[gkaiseril]

Court Has Ruled

This topic has been ruled on by the U.S. Supreme Court for this occupation. Theyreport income and are allowed expenses. Just because it might not be legal in your locality does not prevent the reporting and taxing of the proceeds.

[DTS]

Here's one for the board -- I truely had a client yesterday that made AND is REPORTING $2,000 in cash as income. I asked her for her offsetting expenses. She said the supplies were $200 and "tools" were $250. I asked what "title" should I use for her business and she said "Prostitute". My mouth dropped open and I just stared at her. She kind of giggled and said oh, just put down house cleaning. I inquired about other expenses a "house cleaner" would have -- maybe some auto expense? She said no, the houses she cleans are very close to where she lives. Ok. Well, I didn't inquire as to what the "tools" were. So I finished her return and efiled it. Well, I suppose in these hard times, everyone has to eat.
My wife and I just laughed ourselves silly last nite when I told her about my 9;00 am client.
Hope you all get a kick out of it too.
I'm now DONE!!
Larry

Hey Larry,

I thought you were retiring!?

[jimmcg]

Here's one for the board -- I truely had a client yesterday that made AND is REPORTING $2,000 in cash as income. I asked her for her offsetting expenses. She said the supplies were $200 and "tools" were $250. I asked what "title" should I use for her business and she said "Prostitute". My mouth dropped open and I just stared at her. She kind of giggled and said oh, just put down house cleaning. I inquired about other expenses a "house cleaner" would have -- maybe some auto expense? She said no, the houses she cleans are very close to where she lives. Ok. Well, I didn't inquire as to what the "tools" were. So I finished her return and efiled it. Well, I suppose in these hard times, everyone has to eat.
My wife and I just laughed ourselves silly last nite when I told her about my 9;00 am client.
Hope you all get a kick out of it too.
I'm now DONE!!
Larry

What did you use for principle business activity code? Closest I can find is 713900 or 711510

[DTS]

This topic has been ruled on by the U.S. Supreme Court for this occupation. Theyreport income and are allowed expenses. Just because it might not be legal in your locality does not prevent the reporting and taxing of the proceeds.

It's odd the Supreme Court would allow the expenses. It's been my (mis)understanding that any court will not be a participant or grant a favorable ruling for someone committing a crime (I've forgotten the term for that, but I think it's called something like "tainted hands"??).

D

[BHoffman]

It's odd the Supreme Court would allow the expenses. It's been my (mis)understanding that any court will not be a participant or grant a favorable ruling for someone committing a crime (I've forgotten the term for that, but I think it's called something like "tainted hands"??).

D

The "tainted hands" treatment is probably de minimus anyway.

[DTS]

The "tainted hands" treatment is probably de minimus anyway.

What do you mean by the de minimus part? Just in small cases or small amounts?

D

[BHoffman]

What do you mean by the de minimus part? Just in small cases or small amounts?

D

ROTF!!!!!!

I meant the services rendered were de minimus!!!!!!!

[DTS]

ROTF!!!!!!

I meant the services rendered were de minimus!!!!!!!

Well, now I'm embarrassed. I guess I'm just in way over my head on April 16th for these shenanigans. You have to spell things out for me!!

[BHoffman]

Well, now I'm embarrassed. I guess I'm just in way over my head on April 16th for these shenanigans. You have to spell things out for me!!

Shenanigans cost extra

[DTS]

Shenanigans cost extra

I got that one. See, I'm not that dense, so there!

[taxxcpa]

Prostitutes and bookies

Once I prepared a return for a prostitute. She gave her occupation as 'secretarial service.' on the tax return.
I've done returns for bookies. They deduct their occupation license and a 2% tax on wagers that they handle.
I think all legitimate expenses of an occupation that does not violate federal laws are allowable. Prostitution and bookmaking are only illegal if the state law deems them illegal.

[mblatour]

Retire?

Larry can't retire......he'd miss us all too much!! You probably needed that type of client to give you a good laugh and make light of another very lonnnnng tax season. You didn't consider offering to barter services did you? Sorry!! I couldn't resist. Getting my mind out of the gutter now.

Becky