| Income tax deductions for direct sales?

Income tax deductions for direct sales?

Kim asked:


I am starting a direct sales (gourmet food sold in a home-party atmosphere as well as internet re-sales). What are some things that I should keep track of to write off at tax time?

Related posts:

  1. What can I write off tax-wise by working remotely from my home office? Emily B asked: I started a new job May 1st...
  2. Will states collect more “use” tax to cover budget shorfalls? bcnu asked: A great number of people are unaware that...
  3. I Hope Congress Does NOT Extend the Internet Tax Ban. I Love Regressive Taxes that Affect Low Income People? Duminos asked: Are the Dems like me? Do they hope...
  4. Use tax, what’s the deal? gurlygurl20000 asked: Okay I asked a question earlier about having...

Filed Under United States |

Tagged With , ,

Comments

2 Responses to “Income tax deductions for direct sales?”

  1. v b on June 15th, 2009 8:00 pm

    Get IRS publication 334 and 535 and start reading. There is nothing special about this being direct sales.

    You *may* be able to deduct entertainment expenses, but only if you a) make sales at the same time and b) keep a list of the people you had in attendance.

    Do not plan on any deduction for your computer, home office, utilities, etc.

  2. SteveCPA on June 15th, 2009 11:30 pm

    Any time you spend money to make money, you should keep track of what you spent. If you make any expenditures to promote your business or to close a sale, the best thing you can do is record the expenditure, make a note of the business reason you spent money, and file a receipt away as support. Log your business miles, too.