Wants to put me on Salary....

[MsGuy]

Robber, are you lifting all this from some convoluted soap opera storyline or making it up as you go along?

[rvwnsd]

The gift tax is paid by the giver, not the recipient. The max is $13,000 I believe. Here's a link to the IRS information:

 

http://tinyurl.com/lhudak

 

 

[robberbaron4u]

In this particular instance, the check was annotated "for professional services rendered by independent contractor" which precluded it from consideraton as a "gift". The escort's defense is that he was "thought" the money was a gift to start a "personal training business". The IRS paperwork, filed by the client's accountant, goes to evidence that the payment was taxable income for the escort; the client cannot be questioned as to the how and the why and the wheretofore of the thing as he is deceased. In my opinion, the Federal prosecutor, in the event that he fails to get the cooperation he wants from the escort, who is now forty years of age, is going to serve the poor man up in court as I prefer my breakfast bacon: well done, and, my advice to him has been "Tell the man what he wants to hear".

[Guest Bauer]

Business are allowed to deduct ordinary and necessary expenses from its income. Paying the escort the a business would not make it deductible as it would fail the "ordinary and necessary" test.

Beyond organizing your household as a "bed-and-breakfast" I can't see how you could deduct help.

 

It is hard enough to justify an "Entertainment Director".