Interesting Associated Press story:  Sex Toys Tax-Deductible Down Under; Australian Taxation Agency Advises Prostitutes, Strippers, Lap Dancers:

Prostitutes, strippers and lap dancers can claim tax deductions for adult toys and lingerie, officials said Friday, as the Australian Taxation Office issued a list of deductible items for the sex industry.

Condoms, lubricants, gels and oils are among a myriad of other items that these workers can claim against tax, according to a fact sheet issued on the office’s Web site.

While they cannot claim deductions for fitness classes that keep them in shape, the tax office ruled they can claim the cost of dance lessons.

Through thw wonders of the web, here is the Australian tax guidance in question:  Tax Help for People Working in the Adult Industry (5/1/06)  (The opening line of the guidance defines "sole operator" — I immediately thought of this post on the NY Times article about the tax problems of Sarah Patterson, a "foot fetish model.")  Among the helpful guidance:

• You can claim consumable items like condoms, lubricants, gels, oils and tissues, used solely for earning income, as a tax deduction.
• You can claim the cost of replacing or repairing things like equipment, adult novelties, and other apparatus used in your work.
• The full cost of tools is not deductible in the year they were purchased. These types of ‘capital’ expenses can only be depreciated or ‘written down’ over the life of the tool. However simplified depreciation rules allow depreciating assets costing less than $1000 each to be written off immediately if you conduct a small business and have elected to use the Simplified Tax System.
• Casual rental of work premises, such as room only or hourly rental, may also be claimed.