More News Reports on "Hobbying"

[TXSUN55000]

Another article on WFAA about a local presentation regarding the industry nationwide

https://www.wfaa.com/article/news/lo...c-497cb2f65b5c

[LadyAnastasia]

These articles are so ignorant. I don't want them to legalize it but I also want them to stop putting a spotlight on it

[Yoni Man]

Originally Posted by LadyAnastasia

These articles are so ignorant. I don't want them to legalize it but I also want them to stop putting a spotlight on it

Curious, why don't you want it legalized? Concerns on regulation?

[TinMan]

Most of the informed provider opinions on the subject I’ve heard prefer decriminalization over legalization so that they don’t have to worry about the impact of regulation. Also, once it’s legalized and regulated, then you get to declare all that income on your tax return.

[TalliaThomas]

Originally Posted by Yoni Man

Curious, why don't you want it legalized? Concerns on regulation?

Legalization is represented by the brothel system in Nevada. Heavy regulation, licenses that are public information, and when it comes to pricing--- you think prices are high now? Wait and see what happens when we are licensed, regulated, and heavily taxed.

[TinMan]

A great recent comp is the legalization of marijuana. In many states (California is a great example, per published news reports), the promised benefits of eliminating the illegal trade have proven false as taxes and the cost of compliance with regulatory requirements have allowed the illicit product to flourish while the small legal storefronts struggle.

[onlyAMPs4menow]

Originally Posted by TinMan

A great recent comp is the legalization of marijuana. In many states (California is a great example, per published news reports), the promised benefits of eliminating the illegal trade have proven false as taxes and the cost of compliance with regulatory requirements have allowed the illicit product to flourish while the small legal storefronts struggle.

[staff edit - DM]

[Yoni Man]

Originally Posted by TalliaThomas

Legalization is represented by the brothel system in Nevada. Heavy regulation, licenses that are public information, and when it comes to pricing--- you think prices are high now? Wait and see what happens when we are licensed, regulated, and heavily taxed.

Excellent response.


I need to change my stance to decriminalize.

[Sir Lancehernot]

Originally Posted by TinMan

Also, once it’s legalized and regulated, then you get to declare all that income on your tax return.

Not necessarily. In fact, quite probably not, at least in Texas. You "get to declare all that income on your tax return" to the extent that you self-report.


Legalization would be a state issue. A lady would still be in the same position regarding federal taxation as she is now, which is the same as your local handyman who accepts cash only. If either doesn't self-report or brag to the wrong people, or if no one sends in a 1099, he or she will basically remain under the radar. I'll bet unlicensed dealers in jurisdictions that have legalized weed aren't reporting any more on their Schedule Cs now.


I suppose there might be some tightwad somewhere who wants to 1099 a lady, thereby popping her above the radar, so he can claim a deduction for "consulting services" on his Schedule C, but to do that, he'd have to have her name and SSN. Unlikely



I'm speaking of independents here. Legal brothels would probably be more compelled to avoid trouble with any agencies at any level and so, I assume, would probably issue 1099s to their "independent contractors." I know some here have experience n Nevada; they might wish to chime in, though we're going down a rabbit hole.


I don't know how other states with income taxes might match up tax records with their versions of the TDLR, but I suspect it's not done by many, if any.

[TalliaThomas]

I mean-- its still illegal now and I file taxes on my earnings. Granted, my tax return doesn't scream PROSTITUTE--- but I do claim as an entertainer.



The local LEO.... the FBI... the CIA.... they don't have shit on the IRS. I will fuck with the law all day long-- but a wise woman doesn't fuck with the tax man.

[LustyBustyGina38FF]

I claim as entertainer .

[Sir Lancehernot]

I'll just make a couple of comments on taxes.
First, no one I know (and I'm 66) has ever been audited (that I know of). And I know at least one person making $90K a year who's successfully dodged the IRS for the eight years I've known him, and I've done the accounting (but not taxes) for a couple of businesses that have sent me K-1s that don't comport with what I know.
Second, as a W-9 employee and Social Security recipient, I do appreciate the diligence that some people display in complying with tax laws. It always pisses me off when I have to cut someone an off-the-books (e.g., not reported on a 1099) check at the direction of ownership.
Third, I have no idea what any ladies make. But I'll almost guarantee you that, unless there's a mismatch caused by someone filing a 1099 on you, there's no way that a regular citizen operating a cash business as a sole proprietor and making somewhere in the low six-figures or below, is going to draw the IRS's attention unless someone points a finger or your bank files CTRs on your transactions. There are much bigger fish to dry.
At my company. we've been going back and forth with an IRS agent for about a year over a nominal amount of FICA taxes that they say we owe. We don't. But the only way that popped up is because of self-reporting: filings that we and our payroll company made.

[TalliaThomas]

Originally Posted by Sir Lancehernot

I'll just make a couple of comments on taxes.
First, no one I know (and I'm 66) has ever been audited (that I know of). And I know at least one person making $90K a year who's successfully dodged the IRS for the eight years I've known him, and I've done the accounting (but not taxes) for a couple of businesses that have sent me K-1s that don't comport with what I know.
Second, as a W-9 employee and Social Security recipient, I do appreciate the diligence that some people display in complying with tax laws. It always pisses me off when I have to cut someone an off-the-books (e.g., not reported on a 1099) check at the direction of ownership.
Third, I have no idea what any ladies make. But I'll almost guarantee you that, unless there's a mismatch caused by someone filing a 1099 on you, there's no way that a regular citizen operating a cash business as a sole proprietor and making somewhere in the low six-figures or below, is going to draw the IRS's attention unless someone points a finger or your bank files CTRs on your transactions. There are much bigger fish to dry.
At my company. we've been going back and forth with an IRS agent for about a year over a nominal amount of FICA taxes that they say we owe. We don't. But the only way that popped up is because of self-reporting: filings that we and our payroll company made.

I had my first audit many years ago.


Its also important to remember that there are salty people out there that will absolutely report a lady to the IRS if they figure out her real name.


I don't take chances.

[TinMan]

@Lance: Aren’t “unlicensed dealers” operating illegally? Which was my point.

If prostitution is legalized at the state and federal level, it won’t be exclusively a cash operation at that point. I don’t know how much legal marijuana revenue is generated through credit and debit cards, but I don’t think it is as much as other legal products since the inability to get it legalized on a federal level have prevented most banks and payment processors from banking this companies. Once you start accepting payment other than cash you will be hard pressed to avoid paying taxes.

And, yes, I’m aware some ladies do pay taxes on at least a portion of their earnings. Sadly, too few understand how that is a smart thing to do.

[TalliaThomas]

When it comes to states with legal-- you cannot use a credit card at any dispensary due to the law at the Federal level. Even debit cards technically require an "ATM at the register" situation to where if your total is, say, $34-- you have to "withdraw" $40 and they'll give you change.