Network Marketing Professionals Be Prepared for Tax Season
If you are in Network Marketing plan now for tax season it will make your life much easier at the end of the year. We like to keep up with our receipts, daily, weekly and monthly to get the most deductions throughout the year. We have started using tax bot for tracking our receipts and it makes mileage almost effortless to keep up with our trips.There is a tab where you can take a pic and attach it to the proper expense report.
Five Categories to help you Save
- Monthly Auto Deliveries 100% deductible if it meets certain criteria.
- Inventory you keep on hand.
- Samples you give away.
- Incentives for your team.
2. Car Mileage
- To and from anything business related.
- 2016 deduction is .54 a mile.
- IRS requires total mileage of trip, date of trip, reason for trip, address of each stop (tax bot makes this so easy).
3. Home Office
- Deduct a portion of your rent or mortgage (check with your tax professional to see if this applies for you).
- The cost of your computer.
- Office furniture.
- Internet-Phone Bill-Utilities-Bank Fees
- Paper, Pens, Ink Cartridges, Printers, etc
- Website Fees
- Books for Education related to your business
- Postage/Shipping Supplies
- Facebook Ads, Newspaper Ads
- Decorations for hosting parties
- Rental Car
Ways to reduce the chance of an audit
1, Use a Professional and have them file it electronically.
2. Make sure the IRS has your correct address.
3. Report all of your income. The IRS has software programs to find people who don’t report all of their income.
4. Keep records of advice given to your by your tax professional.
Here are just a few examples of things and ways to be prepared for the 2017 tax season. We are personally using the Tax Bot app to make it easier when it is time to hand it over to our CPA. We really like the mileage tracker on this app. It does everything for you, you just have to classify what the business trip was for. We are by no means tax experts, that is why we recommend finding an established professional like ours, that is familiar with network marketing business. For all of our local friends we use Kevin Sizemore and highly recommend him as he is very knowledgeable about Network Marketing.
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