How about I do your taxes, and then you can figure out mine.
- Fed Income Tax
- Dutch income tax
- Company income tax (for both the NL and US)
- VAT reports every 3 months for NL
:eek: <--- kind of what I look like right now
Since adult entertainers are for all intents and purposes independent contractors/freelancers they can put together a wardrobe to be used in the course of their work. I'm sure the best way to being red flagged by the IRS would be louboutin shoes, but if they're buying lingerie and costume jewelry to put in their shoot collection, nobody is going to know if they wore it on an evening out for a non work related event. Especially if they can produce content using those items. I do believe though only a certain percent can be purchased through the course of a tax year. Would need someone to clarify that.
Ah! That's too much tax. I can barely handle my own, it takes me about 2 days to do it. With being self employed/small business, my business expenses basically have to either even out to the exact same as my income, or be more than my income. With that logic, I wouldn't be able to afford life at all- rent, groceries, bills, etc. It's so, so stupid. The US tax system desperately needs some sort of reform.
As for what you can claim, some of the categories can get a little tricky. For example, to claim assets, the items have to be used for a certain percentage of time strictly for business, and a smaller percentage for personal use. And for things like lingerie, toys, jewelry, makeup, and hair products, if it was purchased for the purpose of being used for work, then it can be claimed as an expense, whether or not you continue to use it personally afterward.
And other than the random individuals who get chosen for being audited (since the IRS does choose some at random for audit), the main way they determine whether or not you need to be audited is if your income and expenses is drastically different from the norm with other people working the same job. It's also a red flag if you claim for so many years that you have loss of profit, or very little profit. Other than that, you're very unlikely to get audited, especially if you're not making, say, 6+ figures. They don't care as much if you're only making like $7,000 or $12,000, where you might owe $50. They care more about businesses that are making half a million and paying nothing, or getting a refund.
EDIT: Oh and yes, only a certain percentage from each category of expenses can be deducted per year. Once you reach a certain percentage of expense, even if you spent more on it, they'll simply stop deducting. That goes for transportation, maintenance, business meals, all sorts of things, and even then only some things can be claimed. Like there's some types of business meals (meetings and such) that are 50% deductible, and some that are 100%.