<p>My view as an ex IRS attorney is that if the girl performs services such as sex etc. for money, it isn’t a gift. It is compensation that should be taxable to them. Why IRS hasn’t gone after these deals is strange. I guess they have more to worry about such as widespread ID theft.</p>
<p>Did you mean to reply to this topic? <a href=“How Sugar Daddies Are Financing College Education - #151 by IxnayBob - Parents Forum - College Confidential Forums”>http://talk.collegeconfidential.com/parents-forum/1687669-how-sugar-daddies-are-financing-college-education-p11.html</a></p>
<p>The IRS hasn’t gone after it because being a prostitute is illegal. First, you need to make it legal before you tax it.</p>
<p>But if the gifts are ad hoc and the sex is ad hoc, is it still pay for services?</p>
<p>Hah, I got a call from the “sex crimes division of the IRS” looking to scare me into giving them money. Is this the kind of taxes that OP is talking about or has he just been scammed?</p>
<p>Well if people have to declare it, can they also write it off and get a tax break if they make their services pro bono?</p>
<p>I mean, I’ve been married for a long time (over 26 years), and I could use a tax break. 
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<p>I don’t think so. Al Capone got nailed for tax evasion.</p>
<p>@lmkh70: You couldn’t be more wrong. Whether a business activity is legal has nothing to do with whether it is taxable.</p>
<p>Don’t overlook the barter component. She is providing her sexual services in exchange for both money + his sexual services. So the amount of income she should be taxed on is the money plus the value of his sexual services. You should totally advocate for this to be an enforcement priority at the IRS! </p>
<p>Then again, she should be able to deduct the depreciation on her aging assets.</p>
<p>^^There would have to be cost basis…</p>
<p>I have two aging kidneys I can sell before it becomes depreciated.</p>