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Tax Time Question- Consultant as Host & Consultant Gifts?

In summary, the conversation is about the speaker's difficulty in showing a big show as consultant gifts in their Income and Expense report. They mention having offered a Black Friday deal and using themselves as the host. Another person suggests checking the report parameters and confirms the limit for business gifts is $25. The conversation ends with a recommendation to check the IRS website for more information on small business tax deductions.
junkfortara
Gold Member
88
Hi Gang,
I am looking for some help. I know likely no one is an expert.. I won't hold anyone accountable. :) Just need some guidance.

I printed my Income and Expense report out of P3 and I have one entire show that is not showing up under my consultant gifts. I noticed because it was a BIG one.

I offered a Black Friday deal basically giving away all of my commission (and then some). I marked the discounts as consultant gifts, but it's not showing on my report for the year??? I used myself as the host, is there some tax rule about not claiming consultant gifts against a show I hosted myself??

Thanks for any help you can share!
Tara
 
I don't know if there is a rule since you were the host, but I do know that you can only give I think a max of $35 per year per person. That being said, did you confirm that you had in fact entered them as "Consultant Gift" payments, did you verify your report parameters (dates, checked off the right category). That's all I can think of at the moment.
 
  • Thread starter
  • #3
oh boy- well I'm way over that max. Oops. Still not sure what's up- I did check dates and it did print shows before and after. Thanks for the suggestions and info.
Well-- I'm showing I made a whopping $90 on the year.

Now if we subtract all the goodies I bought for myself... that's a different story. ;-)
 
junkfortara said:
oh boy- well I'm way over that max. Oops. Still not sure what's up- I did check dates and it did print shows before and after. Thanks for the suggestions and info.
Well-- I'm showing I made a whopping $90 on the year. Now if we subtract all the goodies I bought for myself... that's a different story. ;-)
I just checked the IRS website, it's actually $25. Sorry. :(From the 2010 publication:
Publication 17 (2010), Your Federal Income Tax
$25 limit. You can deduct no more than $25 for business gifts you give directly or indirectly to each person during your tax year. A gift to a company that is intended for the eventual personal use or benefit of a particular person or a limited class of people will be considered an indirect gift to that particular person or to the individuals within that class of people who receive the gift. If you give a gift to a member of a customer's family, the gift is generally considered to be an indirect gift to the customer. This rule does not apply if you have a bona fide, independent business connection with that family member and the gift is not intended for the customer's eventual use. If you and your spouse both give gifts, both of you are treated as one taxpayer. It does not matter whether you have separate businesses, are separately employed, or whether each of you has an independent connection with the recipient. If a partnership gives gifts, the partnership and the partners are treated as one taxpayer.
That publication is actually a very good one for small business tax deductions- worth a look to make sure you are entering the right numbers and counting it correctly.
 
Hi Tara,I'm sorry to hear that you're having trouble with your Income and Expense report. As a fellow Pampered Chef consultant, I completely understand the importance of accurately tracking our business expenses. From my experience, there could be a few reasons why the show in question is not showing up under your consultant gifts.First, double check that you have correctly marked the discounts as consultant gifts in your P3 system. Sometimes, if the discount is not marked as a consultant gift, it will not show up on the report. Additionally, if you used your own host benefits to cover the discounts, it may not show up as a consultant gift on the report.As for the tax rule question, I recommend consulting with a tax professional or reaching out to Pampered Chef's customer service for clarification. They will be able to provide you with the most accurate information regarding tax rules and claiming consultant gifts on a show you hosted yourself.I hope this helps! Let me know if you have any further questions or concerns. Best of luck with your business!Sincerely,
 

1. What is the tax implication of hosting a consultant as a host?

The tax implication of hosting a consultant as a host depends on the specific circumstances and the type of business. Generally, if the consultant is an independent contractor and is providing services to the host's business, the host may be able to claim a deduction for the consultant's fees as a business expense. However, if the consultant is considered an employee of the host, the host may need to report the value of the services provided as income.

2. Are there any tax deductions available for consultant gifts?

Yes, there may be tax deductions available for consultant gifts as long as they are considered ordinary and necessary business expenses. The gifts must also be given with the intent of promoting the business. The amount that can be deducted may be limited, so it is important to consult with a tax professional.

3. Do I need to report consultant gifts as income?

If you are the consultant receiving gifts from a host, you may need to report the value of the gifts as income on your tax return. However, if you are the host giving the gifts, you do not need to report them as income as long as they are considered ordinary and necessary business expenses.

4. What types of gifts are considered ordinary and necessary business expenses?

Gifts that are considered ordinary and necessary business expenses include items that are directly related to the host's business, such as promotional items or business equipment. Gifts that are given with the primary purpose of promoting the host's business are also considered ordinary and necessary business expenses.

5. Is there a limit on how much I can deduct for consultant gifts?

Yes, there may be a limit on how much you can deduct for consultant gifts. The amount that can be deducted varies depending on the type of gift and the recipient. It is important to consult with a tax professional to determine the maximum amount that can be deducted for consultant gifts.

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