Write-Offs for Business Expenses: Can a MFP Bag Count?

[kayleigh]

I am getting all my information together for taxes and I came across a thought. I read somewhere on here about the pretty in pleats bags that someone was going to write off as advertising for their business.

So this got me thinking. For example, we earned the MFP in Feb from the Dec 2012 SAT- Why couldnt we write this off as a kit enhancement? I havent used mine but mainly at shows.

What do you think?

 

[kristina16marie]

Re: Questionthere's a great document that i found posted here called "what can i write off" - i've re-attached it here for you that goes into lots of detail about write offs. i think it will help answer your question. =)

 

[Brenda.the.chef]

Re: QuestionThat's a great document but it looks like some things are outdated. Does anyone know if any of the tax laws have changed over these years?I ask this specifically because reading the MILEAGE AND TOLLS portion:
"MILEAGE AND TOLLS
 To cluster meetings, conferences, grocery store, post office, bank, etc. For shows, check with your accountant: this may be deducted if you stop on the way for food or if you have a home office). See note under Home Office Expenses
 The rate for miles driven between January 1 and August 31, 2005 is $0.405 per mile. From September 1 to December 31, 2005 the rate is $0.485. The new rate for 2006 is $0.445.
This tells me that this document is at least 5 years old.....

 

[esavvymom]

Re: QuestionYes, mileage rates change yearly (sometimes mid-year). 2011 Rates:
Jan1 - June 30 = 51 cents
July 1 - Dec 31 = 55.5 centsCurrently for 2012: 55.5 cents

 

[Brenda.the.chef]

Re: Questionit wasn't the mileage rates that concerned me... it was the fact that the mileage rates were from 2005 and 2006 that indicated to me that this entire document was years old. I wondered if anyone knew if there were newer deductions or some that could no longer be used, etc.

 

[vanscootin]

Re: QuestionCheck out the tax info on cc under the 1099 stuff. All the home office info and deduction stuff is there.

Any thing you use in your business can be considered a write off... I guess it depends on the accountant. My accountant told me to write off products earned because they are samples, what would be the difference if I bought them or earned them? One way or another I'd still have to pay for them. I think the bags are less of a write off than a product. So items earned from Sell A Thons were turned around and used as write offs... You can't write off the recruiting things, like a gift card earned, or some of the recruiting incentives (I earned a coffee maker, toaster, and a cd player)

Now a previous consultant I know used to write off her manicures and trips to the salon... my opinion not a tax write off. If you use your better judgement you will be fine.

This was my first year I didn't take a loss on my PC business.... and that was because of all the incentives earned ($2000 for the TOT trip) but after write offs and expenses I only techinically made $1000 profit from my business... which means I paid less taxes.

 

[Sheila]

Re: QuestionYou can check with your tax professional, but I have a feeling the IRS would question that one.When you make money, then spend money on your business ... you actually have a receipt showing where you spent the money. So, lets say the car logo ... that is money that I've taken from my paycheck & spent on advertising. It's a justified expense for my PC business and I have the receipt to show how much it cost me to do that advertising. If you took your paycheck & purchased a MFP, you'd have the receipt to show your investment. But I don't think showing earned incentives as an expense will work in an IRS audit.

 

[ShellBeach]

Re: Question

I am getting all my information together for taxes and I came across a thought. I read somewhere on here about the pretty in pleats bags that someone was going to write off as advertising for their business.

So this got me thinking. For example, we earned the MFP in Feb from the Dec 2012 SAT- Why couldnt we write this off as a kit enhancement? I havent used mine but mainly at shows.

What do you think?

You're right, you earned the MFP. It's considered income, not a deduction.
I'm guessing you didn't get a 1099-MISC from Pampered Chef this year. If you had, the MFP would have shown up on the "Other Income" detail.

For example, my 1099-MISC shows the large duffel as being worth $50. I can't write it off as an expense. I can write off the expenses I incurred having the 2 shows to earn that bag, but not the $50.

If someone bought the pretty in pleats bag, instead of earning it, that is an expense.