Tax Planning for Starting a Pampered Chef Business

[chefleshia]

Hello all,

I am thinking about starting PC in the next couple of months. I would probably order my ss kit next month and start getting supplies. Would I have to put them on this years taxes or could I hold them till next year?

TIA,
Leshia

 

[Laurenncraigory]

I believe that since the purchase is made in 2005, it has to be written off in 2005, of course my mom still does my taxes for me, so I may be wrong, but that would be my guess. I know I was told that if my babies are born before midnight on dec. 31st, I could write them off too...I definitely don't care wether or not I get to write them off, I just want them to be healthy, but it is what I was told

 

[AldeaY]

Tax Info 2005If you join PC and if you make over $500, you will get a 1099 form so you can claim income taxes for your own business. If you haven't made $500 yet, then you don't need to claim the income. I join in November of 2002 and did 6 shows between Nov & December and didn't get an income of $500 so I didn't get to claim the income or didn't have to worry about filing for it. But now its been 3 years and I love filing EVERYTHING I earn!!! its a great business!!

 

[fruit76loop]

If you join PC and if you make over $500, you will get a 1099 form so you can claim income taxes for your own business. If you haven't made $500 yet, then you don't need to claim the income. I join in November of 2002 and did 6 shows between Nov & December and didn't get an income of $500 so I didn't get to claim the income or didn't have to worry about filing for it. But now its been 3 years and I love filing EVERYTHING I earn!!! its a great business!!

These tax laws can be confusing. But when you earn money, no matter how much it is, you are supposed to report it. The PC is only required to give a 1099 form if it is over $500. But if you make $499 and don't claim it, you are asking for trouble. If you get audited they will find it. I always say...better safe than sorry.

But yes, your kit would be a 2005 deduction.

 

[Pampered Sofia]

Foreign Tax QuestionHello Ladies,
Does anybody know about the Foreing Earned Income Tax Credit? I ask because I am trying to figure out if PC qualifies. I am a Navy wife and we are stationed overseas. Right now, my income (not PC) is exempt from taxes so I was wondering if PC would be too since it is earned overseas as well. If not, it doesn't reall matter because I will just claim all my deductions.. but thought filing the credit would be easier since I've done it already for my current job.
Thanks!

 

[Shawnna]

One thing my tax lady told me was that if you don't sell a certain amount of product, your business is considered a hobby, therefore you don't claim the income or the deductions...except in the case of a business start-up and they have different rules. My mom sells Mary Kay and last year the tax lady wouldn't let her file any of her MK stuff because she didn't sell enough during the year. She has been selling for years, but she doesn't do partys anymore, she just has repeat customers, so her income has dwindled. This was the first time she wasn't able to claim it. It really isn't a large amount of money, but I can't remember what it is. My suggestion is ask a good tax person...and, not all tax people are good.