by Nunzio Bruno
So you have your goals all set right?! I mean all over the internet this week all I’m seeing are posts and articles about starting your 2011 off with a bang. Well that’s not with this is today – sorry! What I want to do with this post is to get you thinking about how you are going to tackle saving as much as you can with your tax situations. If you are a talent agency or a production company then you probably already have all your tax resources lined up nicely (or you should have, you’re established!). This post is more for the performers who are contracted per diem or scene and paid in cash and checks right on site. I want to make sure that you have a least a few tools in place to keep you from sweating at the last minute and to help you keep as much of your hard earned dollars as possible.
1. Keep receipts! While hoarding your receipts in a shoe box is not anywhere near ideal it is a start. If you are shopping for make-up, clothing, accessories that you use on set then odds are you can write them off. This goes for the tools of the trade too – if you use props on screen and then again off it all counts.
2. Doctors appointments and checkups. If your doctor’s appointments, check-ups, and testing exceed 7.5% of your income then you can write it off. So keep track of those expenses!
3. Travel. Driving and flying can often be a big part of your day and if you are inclined to keep track of it then you can deduct this as well. Keep track of mileage and fuel costs/consumption. Along the same lines if you subscribe to any industry magazines, go to industry events or just watch buy a DVD or two to support a friend then you may be able to write that off.
4. Are you traveling for a meeting out of state? Do you have an interview or a pitch that you need to fly out for? Well you can deduct your faires like air travel and hotels before the meeting. I know this piggy backs a little on the third one but even food, cab, and entertaining can also be grouped into these expenses.
5. Gym memberships, breast implants, nose jobs, etc can also be written off. The moral of the story here is that if you are in front of a camera then anything you do to keep yourself there can be deducted. The same goes with any kind of sports supplements you might be consuming to keep yourself fit.
The adult entertainment industry has a ton of expenses that some IRS agents would argue aren’t deductible. The trick to beating a lifestyle audit which is bound to happen eventually is to keep track of records meticulously. It sounds like a lot of work but it’s really not much more than just keeping receipts and taking note of where you are spending. Odds are if you are a busy performer than you’ll be able to save yourself more than just taking a standard deduction.
This isn’t a complete or comprehensive list by any means on purpose. If you have tips, tricks, or experiences I (and the rest of everyone here) would love to talk about them! Leave in the comments and let’s try to save some performers some money!
Nunzio Bruno
Financial Coach/Business Consultant
Financially Digital
http://www.financiallydigital.com
While I agree with items 1, 2, 3, and 4 – 5 is so full of errors it would be a shame to have someone accidentally follow this advise and get into some very hefty trouble. A financial advisor is great for managing your cash/investments but in NO WAY qualified to give tax advise. If you want to know what qualifies as a tax write off speak to a CPA that specializes in the adult industry. The IRS doesn’t “argue” about what is and isn’t deductible. There are clear and complete guidelines to what is and isn’t allowable as a business expense.
ffugly: I absolutely agree with you about consulting a CPA for specific advice. It was not my intention for this article to be the end-all-be-all for deductions. I am also not a financial advisor 🙂 This article was designed to give a little insight to possible deductible expenses and 4-5 are if categorized correctly. Also if you’ve ever had a tax returned kicked back to you (or your CPA) because of errors you would know that the IRS does indeed “argue” and it can lead to audits. Thanks for the comment!!
I have indeed been through several audits and I still fail to see how you are either qualified or experienced enough to be giving this type of advise.
ffugly: Having been through the audit process I’m sure you can appreciate the implications of taking the appropriate due diligence in recording expenses. In the adult industry where a performers principal means of earning income is by using their body you can see that arguments can be made to include some of the expenses I’ve mentioned above. This should not be misconstrued as advice, I’m merely trying to get performers and their constituents thinking about how to better utilize the resources available to them to preserve or create financial efficiencies – education and conversational use only. As to my credentials – I have a Master’s Degree in Financial Planning, completed all the necessary CFP education credits and have been in the financial planning, as a planner, industry for over 5 years. I really appreciate your comments and for trying to keep my posts as honest and accurate as possible 🙂