The more that taxpayers know about possible deductions, the bigger the chances of lowering your taxes. For a speedy tax filing, it is always advisable to have proof of expenses copied and stored. Operating an MLM business can help the finances of everyone, however, these operations also carry risks.Īs long as taxpayers pay their taxes promptly and properly, the IRS will help make the whole tax process easy and convenient.
However, these communication methods may need evidence proving that they are purely for business purposes. The IRS can also consider mail correspondence as communication expense, as well as online communications that have subscription fees. Having a separate phone line for business can really help keep track of all your business calls. However, it is advisable to have a separate line for business and for personal use since proving that each call is for business purposes can be quite challenging. The IRS allows 100% of the phone bill as a valid business expense. Taxpayers can deduct phone bills for business expenses. The IRS considers a specific travel session as valid for business purposes if the taxpayer can show proof that such travel is for business.Ĭommunication via phone is still quite popular even with the instant massaging apps available. Vehicle depreciation is a substitute tax deduction for tolls and parking fees.ĭo note that if investors choose toll and parking fees as a tax deductible, he or she cannot choose vehicle depreciation and vice versa. Tolls and parking fees are also possible business expense deductions. Most of the time, the standard rate is higher than the current rate, so taxpayers take advantage of this. According to the IRS 2018 Standard Mileage Schedule, the rate is 54.5 cents per mile traveled for business purposes. The taxpayer can choose between the current fuel price cost or the standard mileage rate by the IRS. According to the IRS, the transportation cost is total mileage covered multiplied by the fuel cost on the day of travel. Marketers will need to calculate the transportation costs themselves. Fuel costs can raise business expenses, so the IRS allows the deduction of transportation costs.
Most MLM marketers have to drive miles to reach more people and close more sales. Transportation Costs Gas pumps at a gas station However, local influencers may prefer getting paid in person, which may not have records.Īs long as the taxpayer has proper documentation for advertising costs, the IRS can consider these expenses for lowering the tax income bracket.ģ. Some influencers prefer bank or wire transfers, while others prefer PayPal or Venmo, which is great as they leave records.
Because payment for these service providers is usually personal transactions, receipts are a bit more difficult to prove.
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Posting on Facebook is free and is not a business expense, but buying sponsored ads on Facebook has digital receipts.Īnother issue to note is that of social media influencers and blogs. The IRS has also accepted internet advertisement as possible business expenses.ĭo note that the digital advertising costs must have receipts. Other traditional media costs also cover radio and television ads. These expenses cover magazine and newspaper prints as well as brochures and flyers. In fact, these kinds of expenses are actually the first item in the Schedule C expenses list that taxpayers send to the IRS.
Personal Expenses in Marketing for the MLM CompaniesĪdvertising and marketing expenses are valid business expenses to lower your income bracket. However, do note that audits are generally stricter, so make sure that your products do not have the possibility of being confused as for personal use.Ģ. Interestingly, the IRS considers such items that are for business purposes as assets that the IRS cannot seize. As long as the amount and prices are reasonable, the IRS can consider such items as valid for lowering taxes owed. As long as renting the space and payment for entry to the event relates only to the business function, no personal entertainment present whatsoever, then taxpayers can write these expenses off.Īnother possible tax deduction that can help lower your income bracket drastically is the purchase of product samples. Sometimes, someone has to organize an event or attend a conference for publicity. If the company has legal standing and the taxpayer has all documents needed, the IRS can consider membership fees as tax deductible to further lower your tax bracket. For example, most MLM companies have a membership fee, which is either paid annually or once for life.
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