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There are hundreds of benefits to starting a network marketing business. The main benefit that I am going to talk about today involve some MLM tax tips.
Just about every network marketing company has a monthly purchase requirement to qualify for the commission bonuses. Many companies even require this to be set up as a monthly auto-delivery or auto-payment. Here’s the big secret. Your monthly auto delivery is 100% tax deductable.
Since the auto-delivery is a common requirement for all members, expected from the business builders but not from regular customers, necessary in order to get commissions, and appropriate for the industry it is covered by Publication 535 Business expense page 2. This basically means that the expenses are ordinary, common, and necessary to do business. So YES, it is 100 percent tax deductable.
Something else that is interesting is that if a doctor recommends and supplies a product from their office, the product is now a medical expense to the patient and falls under Schedule A.
Below is a few more MLM tax tips and deductions that you may be able to use:
Part of your mortgage or rent – All business are expected to have to pay rent or a mortgage. This includes home based businesses. This means that a portion of your monthly mortgage or rent payments are looked at as a business expense.
Internet Connection – Majority of home based businesses include some kind of online aspect. This means that in order for your business to function properly it requires an internet connection and becomes a business expense.
Office equipment and furniture – Yes, you are expected to have a computer, desk, conference table, and large television for your business so these are also business expenses.
Company events and conferences – This is actually pretty big and I recommend participating in these as much as you can. You should never stop learning and these events are great to learn new techniques and just get yourself charged back up. The good thing is that your attendance cost, lodging, transportation, and meals are all tax deducible while you are at the events.
Dining out – As long as you are discussing business that these meals then they are considered a business expense. So feel free to take a down-line or even an up-line out for a business lunch every once in a while.
There are many more commonly known MLM tax tips out there. These are just the ones that I found interesting and offered the biggest return.
In the end, taxes may hurt but by starting a network marketing home bases business you will be eligible for tax deductions that you would not have otherwise been able to use.
Just so everyone knows, I am not a tax attorney. You should always consult with a tax professional. I also cannot provide any warranty to the information in this article even though I do use it.
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