Tax Write-Offs for Starting a Pampered Chef Business

[heat123]

This will be my first 1099 for taxes and was wondering if anyone could tell me if I can write off everything I purchased to start up my PC business?

Including: Kit, booster kit, website, banners, alot more product, paper work supplies and door prizes, costs for 4 grand opening shows i.e.(food, paper goods, decorations etc) , sampling recipes at home, business clothes (I bought professional attire) for when I do all shows, office supplies, stationery, stamps that about concludes my list I think?

I know people must think I spent way to much to start up but I felt it was worth putting money into it up front rather than along the way!

I have yet to see a profit but have pretty much broken even after Jan. my commission.

thanks for any input!

 

[rwesterpchef]

There is a tax tips guide on Consultant's Corner.

 

[ange13]

I have always deducted all that type of stuff, inlcuding mileage, home office, utilities, internet, cell phone, bank fees, money order fees, your tax preparers fees, etc.

You'll be at a loss, but that's ok, you'll get a nice return!!

ange

 

[GeorgiaPeach]

Including: Kit, booster kit, website, banners, alot more product, paper work supplies and door prizes, costs for 4 grand opening shows i.e.(food, paper goods, decorations etc) , sampling recipes at home, business clothes (I bought professional attire) for when I do all shows, office supplies, stationery, stamps that about concludes my list I think?

QUOTE]

The only thing that is on your list that I don't think you can deduct is the business clothes. I think you can only deduct "regular" clothes if you ONLY wear them to shows...no where else. Like khaki pants can be worn at places other than your show. The exception is clothes you buy from VIP with the PC logo on them. I'd ask your tax preparer to be sure.

Also...don't forget mileage to and from post office, grocery (to buy ingredients for recipes), etc. When you have more deductions than income and take a loss for the tax year, you can only do that for 3 years in a row, then they consider it a hobby and I don't think you are entitled to deductions.

 

[chef131doreen]

taxes

You can write off clothes that say Pamperedchef it is a form of advertizing we buy these items for our business . My director tod me that what ever we buy for our buisiness we can write off. I do have a question if anyone can help on our pampered partner I now have 5 years of taxes on it do you clear everything out each year I do have the past years on paper cause I print it so can I clear it or keep everything on pampered partner.
Doreen Zaino

 

[Swirl]

Question

Since I started in Nov and I did not make $600 it said I will not get a 1099, can I still file taxes and take deductions without a 1099? I have the startup cost for those 2 months I really hate to lose those deductions.

 

[minshriver]

No 1099

Yes you can still file your taxes without the 1099. Your taxpreparer will just note that you don't have one in your return. By the way does anyone know if all of the 1099s were sent out yet? I didn't get one. Oh and about taking a loss for more then 3 years in a row, my taxpreparer said if you spent it claim it. Just be well prepared with documentation to back it up in case the IRS has questions. I've been taking a loss for 5 years now, but hopefully I'll be in the plus this year since I want to go to the Bahamas! Thanks.

 

[heat123]

Thank you!

For all your replies! I'm relieved almost all can be written off! That'll save me from paying any this year!
Hopefully next year (a full selling year) will be a profit and not a loss!

Kinda hard though not to buy ALL of our stuff and 1/4 of the New stuff I didn't earn! Every paycheck!

 

[rachelpc]

Received 1099

Hi everyone,
There was a question about when the 1099's were sent. I received mine last Wednesday. All companies are required by law to have tax items post marked by Jan , 31st. So you should be getting it any day.
Rachel

 

[ddcook]

1099 on Consultant's Corner

You can also see what the HO will be sending right from Consultant's Corner. Just click on Managing Your Business -> Financial Forms and Applications -> Tax Information. You will find "My 1099" listed. It will include your commission AND your 'other income' such as prizes, incentives, etc.

HTH