Tax Time Has You Covered For Girls Uncovered
Good News For Bangor's Diamonds Gentleman's Club Customers - The Money You Stuff In "There" Could Be Deductible! Just in time for tax preparation season, an expert who runs a popular financial blog has delved into that most important tax law question: could a rapper legally write off "making it rain" at a strip joint? Turns out, it's entirely possible, says tax law professor Paul L. Caron, the brains behind the Tax Prof Blog.
"There are 2 possible ways a rapper could justify deducting strip club tips as a business expense," Caron explains: by listing the money you've thrown at a stripper as either an entertainment expense or by considering it advertising and publicity.
Specifically, if tossing the cash is done to entertain clients, Uncle Sam is good with a taxpayer considering the raining cash an entertainment expense -- but only if the amount isn't deemed "extravagant." Caron explains in a hypothetical, "So it might be hard for Drake to justify dropping 50K in a club, but another rapper who lets a grand fly would have a much better argument."
If a rapper considers tossing out some dough at the ladies to boost his image, on the other hand, that falls into the "advertising and publicity" category. That's provided such image boosting it is deemed to be "reasonable...and are directly related to [the rapper's] business."
Party On! Cha Ching!