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Since I've started in this Hobby as a Service Provider, there were times I worked Full-Time and did Hosting on the side. Also, times I hosted Full-Time, with this being my only income. Working Full-Time, you dis your yearly taxes, and didn't claim the Hosting you did part time. However, Hosting Full-Time and not Filing an Income tax, does have its Negative Outcomes .. Like the sitation many are in now. I am and will be Claiming this now, as it does have positive outcomes. Claiming this hobby sure isn't what I thought it would be. I should of been doing this before, but better late than never. 👄

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2 hours ago, SarahAlexxx said:

I would love to, I'm just not sure how to, or if it's even legal under law. My big worry is being audited and it getting any of YOU in trouble. It's not that I'm trying to avoid it because I'm a liar. Its that in terrified and still fairly new to the lifestyle. Its help I need, not judgement. Lol. If any of ya'll work for CRA or lawyer... maybe some advice would be awesome. 

Im a CA/CPA. All income earned, whether through legal or illegal activities, is taxable in Canada. CRA Wants their cut either way. It is legal to sell sexual services in Canada, so you're good either way. Unless you are keeping invoices with client's real names, contact info and SIN's the likelihood of getting a client in trouble is nil. 

If you've already filed taxes for 2019 or prior years it could create a problem to now go back and amend returns and report self employed income. You'd perhaps have penalties for falsely filing the originals. Amending one year would not create a problem unless you omitted income in the past. If you haven't been filing you still can, however, you'd need to reconstruct income and expense for 2019. 

It would also be difficult to resolve this on a timely basis. Getting sometime to prepare your returns & having CRA process them will take time. 

Edited by redmana2
Clarity
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Caveats: You might end up owing more tax than the benefit. I don't know the specifics of the new CERB (familar acronym, isn't it) legislation - I don't know if needing to quit your self employed job for safety qualifies as readily as being forced to quit becuase of government orders. 

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4 hours ago, redmana2 said:

Im a CA/CPA. All income earned, whether through legal or illegal activities, is taxable in Canada. CRA Wants their cut either way. It is legal to sell sexual services in Canada, so you're good either way. Unless you are keeping invoices with client's real names, contact info and SIN's the likelihood of getting a client in trouble is nil. 

If you've already filed taxes for 2019 or prior years it could create a problem to now go back and amend returns and report self employed income. You'd perhaps have penalties for falsely filing the originals. Amending one year would not create a problem unless you omitted income in the past. If you haven't been filing you still can, however, you'd need to reconstruct income and expense for 2019. 

It would also be difficult to resolve this on a timely basis. Getting sometime to prepare your returns & having CRA process them will take time. 

Thanks for the info. I dont plan to file much for this year, but I do want to start filing. I know selling services isnt illegal, technically. However, it being your only supportive income is...

 

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27 minutes ago, SarahAlexxx said:

Thanks for the info. I dont plan to file much for this year, but I do want to start filing. I know selling services isnt illegal, technically. However, it being your only supportive income is...

 

No, there's nothing illegal about having sex work be your sole source of income! Feel free to PM me if you'd like the name of the accountant I've worked with. His rates are very reasonable and all was done properly and above-board. I just had to compile totals of my income earned and claimable expenses, and he took care of the rest. There's no reason/need for the CRA to have specific details of your clientele/who paid you for what, so there's no reason to worry about your clients being outed. Just don't give them that info as they don't need it 🙂 Good luck! There are definitely advantages to filing your taxes - proof of income to help you get a mortgage or other loan, peace of mind, etc, etc!

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4 hours ago, SarahAlexxx said:

Thanks for the info. I dont plan to file much for this year, but I do want to start filing. I know selling services isnt illegal, technically. However, it being your only supportive income is...

 

You don't file as an escort. There are many different  types of categories you can file under. An accountant can help you decide which category to file under.

Unless you are earning money from social assistance (which limits the amount of extra income allowed), you are not under any obligation to divulge details.

So many of our expenses can be claimed, thereby reducing our taxable income.

Get the ball rolling. Ten years from now you will be glad you did.

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38 minutes ago, Meaghan McLeod said:

You don't file as an escort. There are many different  types of categories you can file under. An accountant can help you decide which category to file under.

That's a good point - I believe my accountant filed under the very broad category of 'personal services', but there are many options.

 

 

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Just remember, the government really just wants your tax money.  They don't actually give a damn where it comes from as long as you're reporting it.

 

The "self employed" section is pretty vague.  I have 0 "proof" of how much I actually make, so it's basically just plugging in numbers, and paying ridiculous amounts of tax haha

 

 

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22 hours ago, Meaghan McLeod said:

 Ten years from now you will be glad you did.

Excellent point. And perhaps even more glad in 30 years. A lot of the tax you will pay is Canada Pension. CPP is all the retirement most Canadians will ever have. Don't cheat yourself out of it.

CRA rarely audits small proprietorships. We have a self reporting tax system, and they're usually not eager to hassle taxpayers and discourage voluntary compliance. But keep your receipts! Hotels, flights, internet, cell phone, car expenses, lingerie *probably*. If CRA asks for receipts and you don't have them they can deny the expense.

The industry code isn't something CRA cares much about. Just about anything will do for filing.

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Sorry Rambler I just posted in the wrong place like the technical genius I am . .Putting comments in the wrong spot is the complication , all me. I need to learn how to use a computer someday, bah ha. The other complication is trying to figure out exactly how to address the situation we are in. 

 

I'm waiting for smart words to arrive in my  head....  ha ha , Could be a while.

xo

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I can not believe how this is going. This section is supposed to be about positive review or request information. I fail to see the positivity in this thread now. Yes, I too am in a position where I feel relatively secure financially and was able to retire at an early age. But I also know how hard it was to reach that goal and it certainly would not have been possible when I was in my 20 or 30 years of age.

I am a believer in people in general. I have confidence that the majority of people are able to make decisions that would not lead to harm to themselves or others. Yes, there are exceptions of course but I feel most will know when the risk is too high.

This does not need to become a tug of war where no one wins. Instead we should be positive, encouraging and helpful to each other. This will not happen if all we do is dump on each other. Let us just be kind to one and all!!

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7 hours ago, Lookingfor said:

Must be hard to smile with the bullshit coming out of your mouth unbelievable. Yes me to I am thankful that people's true characters are coming out just how foolish they are thinking of themselves and to hell with anybody else 

 

 

Edited by Exotic Touch Danielle

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On 3/27/2020 at 10:15 PM, redmana2 said:

CRA rarely audits small proprietorships. We have a self reporting tax system, and they're usually not eager to hassle taxpayers and discourage voluntary compliance. But keep your receipts! Hotels, flights, internet, cell phone, car expenses, lingerie *probably*. If CRA asks for receipts and you don't have them they can deny the expense

Thanks for that, one of the brighter points on this thread... some good tax advice :-).

BTW: If anyone is interested, there's an interesting video in one of the youtube channels i subscribe to. The context isn't quite topical (state actors and how they troll/sow toxicity in social media). I find the tech interesting. others may appreciate some of the discussion about how the social media giants deal with bad actors in their community, and how social media participants can improve tone by emphasizing community. (like RayRenpelle, ET_Danielle, and others have been doing 🙂 ).

 

"Smarter Every Day: How Reddit deals..." : https://www.youtube.com/watch?v=soYkEqDp760

-cbs

 

Edited by clearbluesky15
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   16 hours ago,  Lookingfor said: 

Must be hard to smile with the bullshit coming out of your mouth unbelievable. Yes me to I am thankful that people's true characters are coming out just how foolish they are thinking of themselves and to hell with anybody else 

 

image.gif.a4d3aad6a6b1ea998b761f3f59532fad.gif

Wow, that's not very nice 

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27 minutes ago, lostsoul said:

I post recos and warnings that get deleted and this trashy thread can keep going on. Open up a tax help thread and the rest of you should not toot your financial horns and keep judgments to yourselves

The thread is about ladies making a living in difficult times and getting help they're maybe admissible to.

If you got problems with posts, threads and recos being deleted, publicly venting about it won't help you.

Contact a Mod and simply ask why it's happening.

https://www.lyla.ch/profile/231894-mod_cat/

 

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1 minute ago, Halihotfun said:

Holy....  this thread was for girls that may still be working...  

    Yes and most reputable ladies either scaled back their activities or stopped completely for the time being. If you absolutely want to meet a SP, you can simply look on LL. Don't need this thread for that. 

    Never imagined talks about emergency responses benefits and tax laws could spark so much outrage. LOL

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5 hours ago, katie said:

   16 hours ago,  Lookingfor said: 

Must be hard to smile with the bullshit coming out of your mouth unbelievable. Yes me to I am thankful that people's true characters are coming out just how foolish they are thinking of themselves and to hell with anybody else 

 

image.gif.a4d3aad6a6b1ea998b761f3f59532fad.gif

Wow, that's not very nice 

Lol ... not even gonna waste my time with it! 

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2 hours ago, lostsoul said:

Your a moderator wanna be, a mouth piece in every thread who thinks a little too high of himself. Always imposing your opinion and judgement as the be all to end all. Do not bother quoting me, I have not seen a reco or warning from you, your jibberish is useless to me. 

Hey Hey, "Back Off" lostsoul 😘

image.gif.25af216c993a3a8d06bbd0fc2b0b9f8f.gif

And yes, this Thread going to Explode 

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Hi everyone. This topic was getting out of hand, so we aren't allowing further discussion. We try to keep Lyla as positive a space as possible, so please play nice! 

Lots of love x

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