Pampered Chef Dollars & Tax Deductions: Q&A for Newbies

[lauriedip]

where do you guys put the food purchased for recipes to try out for deduction? what category?also HO makes us pay taxes on our free stuff, do we deduct what we bought with pc dollars too then?
I know they also charge us for insurance ? do you deduct that.
sorry, so many questions, newbie and have asked cluster many times to no avail
thanks

 

[ChefBeckyD]

I have a category set up on P3 called Recipe Trial...

Can't remember where I put it when I do my taxes - I use Turbo Tax, and I know I put it under something different there, combined with other expenses...can't remember right now what the category is though.

Yes, deduct what you bought with PC $$, PC $ will be considered payment on your 1099, as will any product earned. When you get your 1099 from PC, it will probably help you see earnings a lot more clearly.

And yes, I do deduct my insurance.

HTH!

 

[esavvymom]

Ok- slightly different twist on the Food-Tax question.... I had an a 11th-hour cancellation, and I already had the food for her show. Can we still take a tax deduction on food purchased for a show- even if that show canceled? I had actually purchased the food TWICE for her- she did it to me twice in one month.I think I ended up making the recipe and can probably call it "Recipe Trial"?

 

[gaddischef]

any PC recipe I make, for shows or home I deduct -- I call it practice, or recipe trial, for my shows....

 

[AnaCash]

Hi there! As a fellow Pampered Chef consultant, I completely understand your confusion with deducting expenses for recipe testing and other business-related purchases. The best category to deduct these expenses would be under "Supplies" or "Business Expenses" on your tax return. When it comes to using PC dollars, you can only deduct the amount that you actually paid for the product, not the full price. As for insurance, you can deduct the portion that is specifically for your Pampered Chef business. I hope this helps clarify things for you. If you have any further questions, don't hesitate to reach out to your cluster or your upline for guidance. Best of luck with your business!