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Purchases Made Under a Customer's Name - Taxes

In summary, the conversation is about personal purchases made under a customer's name and the implications for taxes. The discussion also includes how to properly document and claim these purchases, such as using codes for consultant gifts and incentives. It is important to keep good records and accurately report these expenses for tax purposes.
jenniferknapp
jenniferknapp
Gold Member
3,481
Personal purchases made under a customer's name - taxesAlso, how do you plan "prove" it without having a receipt or proof of payment? (since you pay the whole show with your debit card) TIA!
 
Last edited:
Do you mean as a client gift? We have that capability to enter it in PP as a Consultant gift up to $25. So if that is the case then yes I claim them in taxes.
 
  • Thread starter
  • #3
I mean personal product purchases of larger amounts that we add to a show... ex: under my mom's name
 
You can't claim things purchased under someone elses name as a business expense. How would you explain that if audited? "I cheated so I could get the sales up but it was really bought to use at my shows".

I suppose you could claim something that you purchased as a door prize or host gift and purchased it in their name. I would then keep good records.
 
I think the only way is if the order is in someone else's name but you marked the payment as "consultant gift"...
 
  • Thread starter
  • #6
so I guess the question is, does anyone do $25 (the max consultant gift) for almost every show??
 
I use 2 different codes...I have a consultant gift and consultant incentive. I have added the second code in and I have to manually change it from gift to incentive when I use incentives.

For a gift of course, the max is $25 but there is no limit on incentives. A gift is something you give the host as a thank you or to a customer (door prize, free shipping etc). But an incentive is something you give to better your business...such as when you get $250 in orders before your show I will give you a _______ or when you have a $1000 show I will give you a ______. The most important part of this is to keep good records of what the incentive was for in the note line of the expense report. I have had 15 $1000 shows this year and they all have a consultant incentive of at least $50 or more.

HTH
 
  • Thread starter
  • #8
yes it does!! thanks :)
 
No, that is not right.
 

Related to Purchases Made Under a Customer's Name - Taxes

1. How are taxes calculated on purchases made under a customer's name?

Taxes on purchases made under a customer's name are calculated based on the customer's location and the tax rate in that area. The final cost will include both the cost of the item and the applicable tax amount.

2. Do I have to pay taxes on purchases made under a customer's name if the customer is tax exempt?

If the customer is tax exempt, you may not have to pay taxes on their purchases. However, you will need to provide proper documentation of their tax-exempt status and follow any guidelines set by your local tax authority.

3. Are there any special tax considerations for purchases made under a customer's name for a business or organization?

Yes, there may be special tax considerations for purchases made under a customer's name for a business or organization. This will depend on the type of business or organization, their tax-exempt status, and any applicable tax laws in your area. It's best to consult with a tax professional for specific guidance.

4. Can I claim taxes paid on purchases made under a customer's name as a deduction on my taxes?

It depends on your specific tax situation and the laws in your area. In some cases, you may be able to claim taxes paid on purchases made under a customer's name as a deduction on your taxes. Again, it's best to consult with a tax professional for personalized advice.

5. Are there any penalties for not paying taxes on purchases made under a customer's name?

Yes, there may be penalties for not paying taxes on purchases made under a customer's name. These penalties can vary depending on the amount of taxes owed and the laws in your area. It's important to always follow proper tax procedures to avoid any penalties or legal issues.

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