December 23, 2008
Tax Writeoff’s from Mulit Level Marketing / Independent Contractor?
MO asked:
I signed up with a multi level marketing company last year. The biggest bonus for me was the advice from others in the company that you can use this business as a tax write off for your meals, office supplies, cell phone, car expenses, etc.
I signed up with a multi level marketing company last year. The biggest bonus for me was the advice from others in the company that you can use this business as a tax write off for your meals, office supplies, cell phone, car expenses, etc.
1) Is this true that you can write off all of these things if you are not actually making any money from this business?
2) I did not renew with the company this year, so I’ve only really been with them for half of 2008, can I still use all of the year for write off’s?
3) Are there any other companies out there or ways that I can do something for the remainder of this year and next year for write off’s?
Thanks!
Filed under Other - Taxes by John
Comments on Tax Writeoff’s from Mulit Level Marketing / Independent Contractor? »
You can only write off the portion of those items that was spent so you could earn money, and of course even that only for the period where you were actually actively working in that business. And meals, only if you were meeting with clients, which seems unlikely. Actually, few of those expenses are likely to pass an audit.How, for example, were you using your car in your business? If you were doing something like selling in customer’s homes, for example, then car expenses for the miles driven for sales calls and for delivering the product would be deductible. Office supplies used in your business, yes. Cell phone - if some of the use was personal, some business, you’d have to prorate the costs and only deduct the business part.
I think you might have gotten some very bad advice from those “others in the company” re what expenses you can deduct.