What To Do At Tax Time With Your MLM
Every year — about this time — there’s always a prospecting language that says things like:
“If you join our business, you can write off all your expenses. Even your lunch with coworkers or your cellphone bill!”
“If you get started in our business, you can write off every mile that you drive your car. Even if it’s just to the bank or the post office!
“When you start your business, be sure to keep your receipts for anything you buy. If you buy a DVD player and use it in your meetings or invite a prospect to your house to watch a presentation….you can write off the whole thing.”
“Are you going on a cruise this year? Be sure to talk to some people about your business on the cruise. You can write off the whole trip as a business expense!”
And, all of these statements — by themselves as they’re written — are simply not true.
There’s a lot of quick-and-dirty tax advice that’s given in our industry and most of it is well-intentioned. But the main thing is that you get your ultimate tax advice from a professional.
Basically you can boil everything down to these 4 simple items the IRS will look for …..
1. Demonstrate that you intend to make a profit
2. Work your business on a regular basis and consistent basis.
3. Run your small business like any other “real” business.
4. Record all your business expenses, incomes and activity.
Here is the original post:
http://best-mlm-resources.blogspot.com/2009/03/what-to-do-at-tax-time-with-your-mlm.html
Recent Comments