Finding breaks for network marketing tax can be a bit difficult for some people, especially those who are new in the business. Network marketing tax breaks can definitely help you enjoy more of the profits you have made with the multilevel marketing business. However, you might be surprised that there are a lot of aspiring distributors (and even existing ones) who are not aware of the ways they can get network marketing tax breaks.
The first thing that you should do when looking for network marketing tax breaks is to consult with a licensed accounting professional to find specific areas in the business that you can get tax breaks from. But there are general areas that we can discuss to reduce the overall cost of your business.
General Network Marketing Tax Breaks
Most aspiring distributors and network marketing write up their own business plans, and they do not realize that most of the breaks in network marketing tax can be found in this plan. However, if you have not found the potential network marketing tax write-offs that you are looking for, go over the business plan with a licensed accounting professional that you can trust to guide you throughout the process.
Here are a couple of general areas that you can explore for your network marketing tax write-offs:
- Travel expenses and costs. The network marketing tax code will definitely have some provisions that will allow you to deduct all the travel expenses and costs associated with your multi-level marketing business. If you think that travel costs are limited to air travel, you might be pleasantly surprised that you can deduct portions of your gas or mileage costs, toll fees, hotel expenses, meals, and other costs that you have incurred whenever you are traveling for business.
- Utilities. Most multi-level marketing professionals work at home, and they wrongly believe that they cannot use their household utilities as potential network marketing tax write-offs. If you are using your household telephone, fax, and Internet connection for your multi-level marketing business, then you can deduct the portion that you have used for business purposes. Of course, it is understandable that some professionals might be a little wary with including their “household” utilities in their tax write-offs, but the IRS does allow network marketing practitioners to deduct a bit of their rent or mortgage as a business expense if there is a part of your home that you are using for business.
- Marketing expenses. Being in this industry does incur some marketing and advertising expenses, such as having business cards printed, sending out postcards, maintaining your website, and any type of promotional activity can qualify as a network marketing tax write-off. Keep a detailed log of your entire network marketing expenses as it can definitely reduce the taxes that you have to pay to the IRS.
Being smart about the expenses that you incur for your multi-level marketing business is perhaps the best way to reduce the amount of network marketing tax that you pay every year. For more information, talk to one of our Network Marketing Coaches.Google+