Network Marketing Tax Advantages

Network Marketing Has Significant Tax Advantages

It allows for you to start a part-time business while you keep your full-time job. And there are significant tax advantages to network marketing businesses. At BP Tax we embrace this new form of business and have written numerous tax tips for most of the major companies out there including Avon Consultants,  Isagenix Associates, Melaleuca Members, Nikken Wellness Consultants, Arbonne Consultants and many others.

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Tax Deductions

Potential Network Marketing Tax Deductions include:

Automobile Expenses: Must be tracked very carefully in order to deduct the business portion.

 Download Network Marketing Worksheets – for Tracking Expenditures Below

Home Office Expenses from Small Business: Note that for those in their first year of operation you will need to prorate all home office expenses for the part of the year. Only claim from the month you started.

Income: Note that if you’ve paid more than $750 to any one person you will have to issue T4s.

Sales, Revenue, Fees:  It is the taxpayer’s responsibility to track and report all sources of income. This is the gross cash inflow from your clients or customers.

Meals & Entertainment: Total dollars spent taking clients or potential clients out to lunch / dinner. You must keep an accurate record of your receipts with the potential client’s name on the back of the receipt.

Insurance: Paid for your business only. This does not include home or auto or life insurance.

Rent/ Leasing: Rent paid for office or warehouse space for the year.

Phone/Cell: Include long distance used for the BUSINESS and if you have a dedicated line include the rental charges. A portion of your cell phone is allowed.

Travel: All travel expenses which are directly related to the business.

Capital Expenditures: These are items that have a useful life of more than a year and cost more than $250 (ie desks, computer etc)

Tax Advantages

Our number one tip for business owners is tracking ALL expenses. Why? Because it will increase your tax loss and increase your refund.

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