• Join Chef Success Today! Get support for your Pampered Chef business today! Increase your sales right now! Download 1000s of files and images, view thousands of Pampered Chef support threads! Totally Free!

Consultant Gifts: Expense Category Explained

he claims he doesn't remember too much about it. We actually went to H&R Block, and then I did my own at home after he left. I have to say...I was a little scared at the tax prep place, but I'm glad I did it on my own this year. I always do my taxes too, but the hubby wanted a "professional" to do it since it was my 1st year with a biz. I
Melissa78
Gold Member
1,121
What category of expenses do Consultant Gifts fall under?
 
My tax rep said you can only gift $35 per person. She filed a couple of them under advertising, and then created a category listing it as Product Sample Distribution.

Hope that helps.
 
Melissa- I know I posted something for someone else about this- but for the life of me, I can't find the thread. I do however have my notes that my DH and I worked up so I can have this straight for NEXT year. :)Gifts/Consultant Gifts are reported on the Schedule C- line 27 (other) per the IRS Publication 463- chapter 6-page 28 (2009 Tax year edition). (You can find the publication on the irs.gov website- just search for 'pub 463'). The other "rule" I know is that you can only give $25 in gifts per PERSON/recipient per year. I believe this was also in the same publication 463. For example, you can only "gift" to your mom up to $25 for the whole year.Hope that helps!
 
ooh, that's scary. My H&R block rep told me $35. Guess it didn't matter since she listed them differently (Advertising & Sample Distribution).
 
Jolie_Paradoxe said:
ooh, that's scary. My H&R block rep told me $35. Guess it didn't matter since she listed them differently (Advertising & Sample Distribution).
Yeah...that is scary. I just checked my Pub463 that I still have on my computer. It has the "$25 Limit" in bold right at the beginning of the section devoted to "Gifts". It's in Chapter 3 - page 13 of the 2009 Pub 463. But yes, unless you got audited, they probably wouldn't even notice since it's under advertising. But now you can tell them next year! ;)We got tired of telling our H&R reps how to do our taxes (they couldn't even do standard deductions- or weren't ASKING us if we had them....like "do you own a home, pay property taxes", etc. ) we started doing our own....and my DH is notorious for looking at tax publications/codes. :) I did this year because he and I got into such a big argument about my biz expenses. *hehe*
 
I agree Bobbi. I spent 5 hours there, correcting and suggesting. In fact, she did not allow me to list my cell phone as a deduction since I received personal calls too. Once we hit negative, she told me we could stop inputting even though we hadn't even entered mileage! She argued with me about home office space, and kept making typos. At one point, she said...good thing you're watching!

I always do my taxes too, but the hubby wanted a "professional" to do it since it was my 1st year with a biz. I did get them to file it for $60 and paid an additional $30 to cover any difference owed due to mistakes. I'll be filing my own taxes, and probably asking YOU all the questions! ha ha

I did get a cooking show out of it, so I suppose it was worth it! ha ha
 
Jolie_Paradoxe said:
I agree Bobbi. I spent 5 hours there, correcting and suggesting. In fact, she did not allow me to list my cell phone as a deduction since I received personal calls too. Once we hit negative, she told me we could stop inputting even though we hadn't even entered mileage! She argued with me about home office space, and kept making typos. At one point, she said...good thing you're watching!

I always do my taxes too, but the hubby wanted a "professional" to do it since it was my 1st year with a biz. I did get them to file it for $60 and paid an additional $30 to cover any difference owed due to mistakes. I'll be filing my own taxes, and probably asking YOU all the questions! ha ha

I did get a cooking show out of it, so I suppose it was worth it! ha ha

At least you can claim those expenses NEXT year on your taxes. You can claim purchasing software too if you do it on your own. I love TurboTax...rather hard to screw it up if you go through all of the questions. Did your DH go with you to the tax rep? If he saw how bad it was, maybe he'd change his mind. :) (And yes, I know not ALL of them are like that- so please don't chew me out...it's just been MY experience)
 
Sorry for the hijack Melissa. :D

Bobbi....turbotax rocks...that's what I've used in the past couple of years. My wonderful hubby did NOT come along, though I wish I had thought of that!:p

I was sure to give him a recap of the experience and process, and he saw that I deserved a good break. :thumbup: Next year, it's back to me preparing the taxes.
 
  • Thread starter
  • #9
Its ok Laurie. I do know the $25 is right b/c i read that this weekend. I need to do some "creative accounting" because I often buy things for myself but I list it as COnsultant Gift so that I remember it was for me and I surely know I almost always spent more than $25. I still don't understand what category I put it under on my excel spreadsheet which is based on the expense categories given by TT. Maybe I'm not far enough into TT to figure it out. I'm still in the pen/paper stage with my spreadsheets. 2 days right???? 2 days.... *deep breath*
 
  • #10
Melissa78 said:
Its ok Laurie. I do know the $25 is right b/c i read that this weekend. I need to do some "creative accounting" because I often buy things for myself but I list it as COnsultant Gift so that I remember it was for me and I surely know I almost always spent more than $25. I still don't understand what category I put it under on my excel spreadsheet which is based on the expense categories given by TT. Maybe I'm not far enough into TT to figure it out. I'm still in the pen/paper stage with my spreadsheets. 2 days right???? 2 days.... *deep breath*

Whatever you buy for yourself, can be claimed as business supplies if you have used them at your shows. I'm an accountant by trade (soon-to-be CPA). Feel free to PM me if you need help with where to classify things!
 
  • Thread starter
  • #11
tys1031 said:
Whatever you buy for yourself, can be claimed as business supplies if you have used them at your shows. I'm an accountant by trade (soon-to-be CPA). Feel free to PM me if you need help with where to classify things!

Can I jump thru the screen and hug you? The category on TT is "Office Supplies" - is that the same category as biz supplies in the accounting world? (In my simple mind it is but there is nothing simple about the IRS)
 
  • #12
Melissa78 said:
Can I jump thru the screen and hug you? The category on TT is "Office Supplies" - is that the same category as biz supplies in the accounting world? (In my simple mind it is but there is nothing simple about the IRS)

:blushing: Yes it is. Since the kitchen is your "office" that would be the most appropriate category to use. If for some reason you got audited, you could explain to the IRS exactly that.....the kitchen is "my office."
 

1. What is a consultant gift expense category?

A consultant gift expense category refers to a specific category used to track and record any gifts given to consultants by a company or organization. These gifts may include items such as gift cards, event tickets, or other forms of appreciation.

2. Why is there a separate expense category for consultant gifts?

Having a separate expense category for consultant gifts allows for better organization and tracking of these expenses. It also helps to differentiate between gifts given to consultants and other types of expenses.

3. Are there any restrictions on what can be considered a consultant gift?

Yes, there may be restrictions depending on the company's policies and guidelines. Generally, consultant gifts should be appropriate, reasonable in value, and not given with the expectation of receiving something in return.

4. Can consultant gifts be tax-deductible?

In most cases, consultant gifts are not tax-deductible as they are considered a business expense. However, it is always best to consult with a tax professional for specific guidelines and regulations.

5. How should consultant gifts be recorded in the expense category?

Consultant gifts should be recorded as a separate line item in the expense category, with a detailed description of the gift and its value. It is important to accurately track and record these expenses for proper budgeting and reporting purposes.

Similar Pampered Chef Threads

Replies
4
Views
2K
NooraK
  • holliegraham
  • Pampered Chef Finances
Replies
4
Views
2K
AnaCash
  • junkfortara
  • Pampered Chef Finances
Replies
4
Views
2K
AnaCash
  • esavvymom
  • Pampered Chef Finances
Replies
4
Views
7K
AnaCash
  • Jules711
  • Pampered Chef Finances
Replies
7
Views
2K
kam
  • ericadboone
  • Pampered Chef Finances
Replies
2
Views
2K
Admin Greg
  • mandydollie
  • Pampered Chef Finances
Replies
2
Views
940
mandydollie
  • pamperedlisa08
  • Pampered Chef Finances
Replies
4
Views
1K
AnaCash
  • jhaczews
  • Pampered Chef Finances
Replies
2
Views
1K
Admin Greg
  • Luthergrad
  • Pampered Chef Finances
Replies
2
Views
3K
Admin Greg
Back
Top