Do You Have Any Tax Questions - Send Them to Me.

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Discussion Overview

The thread centers around tax-related questions and concerns among Pampered Chef consultants, particularly focusing on what can be written off as business expenses. Participants share their personal experiences and seek clarification on various tax topics.

Discussion Character

  • Opinion-based
  • Anecdotal
  • Exploratory

Main Points Raised

  • One participant, identifying as a consultant, mentions seeking advice from a friend at H&R Block about legal write-offs for Pampered Chef-related expenses.
  • Another participant expresses uncertainty about what can be written off as business expenses, including clothing and car maintenance.
  • One participant shares their intention to pay their spouse for services rendered and questions the threshold for issuing a 1099.
  • Several users discuss the documentation required for mileage and samples given to team members, with one participant noting a lack of organization in tracking these expenses.
  • Another participant inquires about writing off payments made to children under 16 for assistance with business tasks.
  • One participant seeks clarification on how to write off major purchases like a laptop used primarily for business.
  • Another participant asks about deducting shared expenses like cell phone and internet bills that are used for both personal and business purposes.
  • One participant expresses a desire for a clearer breakdown of where to categorize various business expenses on tax forms.

Areas of Agreement / Disagreement

Views differ on specific write-off practices and documentation requirements, with no clear consensus emerging on the best approaches to tax-related questions.

Contextual Notes

Participants are sharing personal experiences and questions related to tax deductions and expenses in the context of their roles as Pampered Chef consultants.

Who May Find This Useful

Consultants looking for insights into tax write-offs and documentation practices may find the shared experiences and questions relevant.

P
pamperedlinda
Gold Member
Messages
10,156
My girlfriend works for H&R Block. She has a quota to meet for "Tax Talks" - which basically means that she has to meet with people and answer their questions, I'm having lunch with her on next week Wednesday and we are going to talk about Pampered Chef/direct Sales and she is going to give me advice on what we can legally write-off and what am I not writing off that I should. She's supposed to meet with groups of at least 5 so I told her that I'd get questions from you all.

Send me your questions via email @ [email protected] I'll put them together in a document and post her answers and advice.
 
Linda,
How neat! I'm just needing to know what all I can write off as a business expense. Some clothes, car maintainance, etc.? I am so clueless about it since this is my first year. Let us know what you find out. Thanks!
God bless,
Amanda
 
I am thinking about writing a check to my DH before the year end for services rendered (keep your mind out of the gutter ladies!). Helping stamp, collate, etc. How much can I write the check for without him having to get a 1099? (he is on Social Security). I believe it use to be less than $600. How many of these individuals checks to different people can I write without a red flag going up?
 
****hanging head in total embarrassment*****This goes back to my total lack of organization, and my little pieces of paper being piled up or little notepads (mileage logs) being misplaced

Mileage: does it have to be actual odometer readings or can I just have mileage?

Samples - I give almost all of my doubles to my team for incentives. How do I document that? Is it necessary or can I just use the value as an expense?

I'm sure I will think of a TON more. You are so awesome for offering this!:thumbup:
 
on the other end of the paying your family spectrum, what about children under 16? how much can i write off paying DS to stamp, sticker etc? how would i document this?

thanks!
 
Be sure to email your questions to Linda like she asked and not just post them here. I am sure that will make it a little easier on her to compile them.
 
  • Thread starter
  • #7
Great questions - keep 'em coming! She is supposd to have about 5 people in attendance - so you all will be there in spirit.
 
Last edited:
I would be curious to know about major purchases like my laptop. What is the best way to write it off? I use this 90% of the time for business.I would also like to know about items I purchase from other people in which I don't get any kind of a receipt (items from here on Marketplace, door prizes at cluster meetings, etc).
 
I like that people are posting some of their questions here to because it gets my brain wheels turning. Some of these make me think ... "Hmm, I hadn't even thought about doing that!!"
 
What about if you have a decal on your car? can you write off all your millage for the year???
 
How do you deduct cell phone and internet etc. that are both personal and business use? Also, does the mileage amount factor in maintenance costs with it, or is that separate?
 
My biggest thing is always WHERE to put the expenses. Like samples, food for shows, prizes, setup for booths, booth fees, etc. I would LOVE to just see the Schedule broken out with what goes under each actual category.
 
I emailed my questions to you!! Thanks so much for doing this!! I really appreciate it!!
 
  • Thread starter
  • #14
got it Chris. thanks.
 
Linda do you want me to email you or is posting here ok?
 
  • Thread starter
  • #16
pamperedpnina said:
Linda do you want me to email you or is posting here ok?
Click to expand...

it doesn't matter - I'm checking here too.
 
Linda will you post all the answers for us also....??? PLEASE!!!
 
So Linda, did you meet w/ your friend yesterday??
 
pamperedpnina said:
What about if you have a decal on your car? can you write off all your millage for the year???
Click to expand...
I've attended a tax meeting at my Director's place. Signs will not qualify for writing off all expenses on a vehicle. You either have to do mileage (must keep good records--starting and end and where went) or expenses totally itemized.
 
Linda, Any update on the meeting w/ your friend?
Thanks!!
 
I'm assuming that she may not have met with her friend, she may be at services this week for her MIL. I haven't seen her online for a while.
 
candiejayne said:
I'm assuming that she may not have met with her friend, she may be at services this week for her MIL. I haven't seen her online for a while.
Click to expand...

Shoot, I forgot about her MIL...thanks for reminding me...
 
  • Thread starter
  • #23
Here's the answers. Sorry it took so long. My gf wrote the answers up and she's been busy too. The attachments she's referring to are in a 'tif' file and I can't attach those.

Pampered Chef Consultant Tax Questions:

1. What can I write off as a business expense, clothes, car maintenance, etc.? Only clothes with Pampered Chef logo would be deductible. See attached pages 7.9-7.13 for other expenses and how categorized.

2. I am thinking about writing a check to my husband before the year-end for services rendered. Helping stamp, collate, etc. How much can I write the check for without him having to get a 1099? (he is on Social Security). I believe it used to be less than $600. How many of these individual checks to different people can I write without a red flag going up? Correct, less than $600. Tax law states that if $600 or more, you should issue a 1099. Unlimited number of checks, if to different people.

3. On the other end of the paying your family spectrum, what about children under 16? How much can I write off paying my children to stamp, sticker etc? How would I document this? Contract labor expense, less than $600.

4. Mileage: does it have to be actual odometer readings or can I just have mileage? Figures you need: Total mileage for the year, to be broken down. Total business miles, total commute miles if you have another job with a commute, total other miles. These three equal your total miles for the year.

5. Samples - I give almost all of my doubles to my team for incentives. How do I document that? Is it necessary or can I just use the value as an expense? IRS would rule that you would need receipts for these (if audited). If you have receipts for value, they could be for advertisement (incentives).

6. Major purchases like my laptop. What is the best way to write it off? I use this 90% of the time for business. Two options: 1) Section 179 deprecation which means depreciate the full amount the year placed in service, or 2) depreciate for 5 years.

7. I would also like to know about items I purchase from other people in which I don't get any kind of a receipt (items from here on Marketplace, door prizes at cluster meetings, etc). I would not recommend expensing anything without receipts, if audited the IRS will disallow the expense.

8. What about if you have a decal on your car? Can you write off all your millage for the year? Decal or not, only deduct actual business miles.

9. How do you deduct cell phone and internet etc. that are both personal and business use? Also, does the mileage amount factor in maintenance costs with it, or is that separate? Determine the business percent usage and that is deductible. Vehicle expenses are either deducted by standard business mileage or actual expenses. Actual expenses allows for oil changes, tires, any maintenance for vehicle and also allows for car washes.

10. My biggest thing is always WHERE to put the expenses. Like samples, food for shows, prizes, setup for booths, booth fees, etc. I would LOVE to just see the Schedule broken out with what goes under each actual category. See the attached pages (7.9-7.13) for the expenses and how they are categorized with definitions on the Schedule C.

11. I have heard that you were only allowed to claim a loss for X amount of years before you HAD to claim a profit or it would be considered a hobby and not be tax deductible? Is this true? If so, how many years can you be "in the red" before you have to be in the black? The IRS presumes that it is a hobby if in the red for 3 straight years, however, this is not a tax law.

12. Computer (laptop) purchases. Do you have to claim a portion per year or all at once? And if I am thinking correctly, you can do the internet in full b/c I only have it for business use only. See questions and answers to #6 and #9.

13. Also, as far as utilities and a portion of your home and insurance it is only the % of the home that is business use, like the office then use that for the % of the utilities you deduct? Correct. Example: your home is 2000sq ft. Your office room is 200 sq ft. You can deduct 10% of utilities, insurance, home maintenance, etc. I would not recommend depreciating the home, if you sell it you have to recapture the amount you have depreciated (claim as income).
 
Linda, the tiff files should be able to be placed in Word and uploaded that way.
 
  • Thread starter
  • #25
wadesgirl said:
Linda, the tiff files should be able to be placed in Word and uploaded that way.
Click to expand...

really? It looks like scanned pages to me. Maybe I can save them as a pdf?
 
  • Thread starter
  • #26
nope, doesn't work.
 
pamperedlinda said:
nope, doesn't work.
Click to expand...

If I could find my usb flash drive you could email them to me and I can covert them at work for you. Unfortunantly, I have been unable to find it again for 2 weeks!
 
Linda is it possible to e-mail the files? My e-mail is [email protected]Thanks for the info...it's very helpful!!
 
thanks for this. I was just checking back to see if there was an update! You are awesome for posting all this great info!
 

Frequently Asked Questions

What types of tax questions can I send to you?

You can send questions related to sales tax, income tax, deductions for business expenses, and any specific tax implications related to direct sales or Pampered Chef. If you're unsure about a particular topic, feel free to ask!

How can I ensure my tax questions are answered accurately?

To ensure accurate answers, provide as much detail as possible about your situation. Include information such as your location, the nature of your business, and any specific tax concerns you have. This will help in giving you the most relevant advice.

Will you provide personalized tax advice?

While I can provide general information and guidance on tax-related topics, I cannot offer personalized tax advice. It's always best to consult with a certified tax professional for specific situations and personalized guidance.

Are there any common tax deductions I should be aware of as a Pampered Chef consultant?

Yes, common deductions for Pampered Chef consultants may include expenses for inventory, marketing materials, home office expenses, travel costs for events, and any supplies needed for demonstrations. Keep detailed records of all expenses to maximize your deductions.

What should I do if I have a complex tax situation?

If you have a complex tax situation, such as multiple income streams or significant deductions, it's advisable to consult with a tax professional. They can provide tailored advice and ensure compliance with tax laws, helping you navigate your specific circumstances effectively.

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