Taxes for Direct Sales Professionals

I am not a tax professional, however I do run my own direct sales company. I have compiled this short list of tips to remember when doing  your taxes this year as well as a list of deductions you may or may not have known about. Always consult a tax professional when doing your taxes.

DOCUMENT EVERYTHING!!!

The most important part of any business, but especially direct sales, is to document EVERYTHING.  I find that having a spreadsheet with all of your income and expenses works great, then you can attach your receipts and documents to it. This will help you maximize your deductions, and keep yourself prepared in case you ever have to show documentation of your tax deductions (AUDIT). 

Your home office has a lot of deductions for your direct sales business. Be sure to keep up with the receipts for every purchase so that you can deduct it all when tax times come around. Even the smallest amount can make a difference in the amount of taxes you may owe during tax season.

Don't forget your

• Office Space/Equipment
• Printers, Paper, Ink
• Files
• Office Furniture
• Pens/Pencils and other office supplies
• Magazine subscriptions that help with the merchandise you sell.

Direct sales comes with a lot of marketing and delivering of products, which can be one of the biggest tax deductions. These deductions will include all of your marketing techniques; traveling, ads in newspapers, promotional parties, lunch with potential customers, or even simply printing flyers for your direct sales business. These are just some of the techniques that are used, but not the only deductible items for you.

1. Gas or Mileage
2. Business Cards
3. Letter Heads
4. Tolls
5. Parking
6. Meals
7. Web Hosting or design
8. Online Marketing
9. Entertaining for potential customers
10. Party expenses (Food, Gifts, Samples, etc.)
11. Promotional Gifts! (This is a big one - all those hotess rewards can be deducted!)
12. Logo Designs
13. Logo Printing on items
14. Brochures
15. Samples

There are a lot of different tax deductions for a direct sales business, but it may depend on exactly how involved in the business that you are. This is a list of different deductions that you may or may not have in your direct sales business.

1. Lodging
2. Advertising
3. Business Bank Accounts
4. Checks
5. Shipping
6. Stamps
7. Cell Phone
8. Home Phone
9. Business Classes
10. Computer Software
11. Tax Software
12. Business Software
13. Booth Rentals
14. Online Classes
15. Books
16. Labels
17. Inventory storage at your home or elsewhere
18. Training
19. Helpers
20. Shipping supplies
21. Utilities (Portion)
22. Professionals such as a tax professional, or organization specialist.
23. Admission to seminars or shows
24. Legal fees
25. Insurance

Always consult a tax professional when doing your taxes especially if you are running a direct sales business. I personally use TurboTax Online and have been using them for at least 4 years now. Who does your taxes? comment below.