I make about 400k a year as a personal escort in southern california. I work 3 nights a week and am always paid cash. I have been putting the money in safes because im worried about depositing it into a bank account that the IRS can track. But I need to start investing all the cash in real estate, savings, stock, IRA's, etc. But I know everyone will wonder where I got this much cash and the IRS will come knocking. I dont know how much I could get away with depositing every month into bank accounts or how much I should claim on my taxes without paying a ton to the government. Any ideas???
2007-08-11 16:19:43 · 4 answers · asked by chaneltaylor430 2 in Business & Finance ➔ Taxes ➔ United States
YOU MUST REPORT ALL OF YOUR INCOME, AND YOU STILL MAY EVEN AUDITED DUE TO THE LARGE VOLUME. YOU WILL HAVE TO PAY ALLOT IN TAXES UNLESS YOU ":ITEMIZE". WHAT YOU ARE DOING IS CONSIDERED A BUSINESS, AND IF YOU TURN IT INTO A BUSINESS, IT WILL BE ALLOT BETTER FOR YOU. YOU MAY NEED TO HIRE AN ACCOUNTANT BUT IT WILL BE WORTH IT! THINK OF THE DEDUCTIONS!!!!!
2007-08-13 13:16:55 · answer #1 · answered by Tamira 1 · 0⤊ 0⤋
To avoid trouble with the IRS, you need to report ALL of your income and pay taxes on it.
Separate issue: this question sure doesn't track with you other questions you have asked over the last few months.
2007-08-12 21:06:40 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Just be honest on your reported income including the interest, anything over fifty cents they can get you on. Also, if yur income or taxes change from the previous year, it don't matter if it is more income or less income, that computer will automatically red flag you and you wil be investagated. So report everything! I hate thae dame government and their taxes, screw them all!
2007-08-12 07:26:23 · answer #3 · answered by Dolly 5 · 0⤊ 0⤋
If you report all your income, then you don't have to worry about an audit.
2007-08-11 23:26:55 · answer #4 · answered by Anonymous · 2⤊ 0⤋