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3 Replies Last post: Sep 29, 2008 7:00 PM by Santa Fe CPA

Help With Income Taxes

Sep 28, 2008 10:35 PM

Click to view ljbloom's profile Professional ljbloom 2 posts since
Sep 27, 2008
Hello my name is Laura Bloomfield. I'm kinda new to the business world. I sell Avon Products and have been a Rep now for 5 months. Income tax time is coming up in a few more short months and this will be my 1st time doing them for business. Do i need to do invertory for my Avon Business??? Also what items for my expenses would qualify for a Tax Write Off??? I would appreciate any answers you all would have. Thanks in advance for helping me, Laura
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Click to view jesse5621's profile Professional jesse5621 4 posts since
Sep 28, 2008
1. Re: Help With Income Taxes Sep 28, 2008 11:11 PM
Hi Laura,

Inventory it depends if you own the inventory or if it still belongs to AVON?
Also, it depends on whether you have incorporated or not....
business expenses are travel (miles driven), lunches with clients (don't be excessive) :) cost associated to selling your products.

Hope this helped.
Jess
Click to view LUCKIEST's profile SCORE LUCKIEST 7,935 posts since
Aug 6, 2007
2. Re: Help With Income Taxes Sep 29, 2008 11:06 AM
Help With Income Taxes, Welcome Laura.

You really live at or in the Grand Canyon, Arizona How interesting and exciting.
It is great that you are thing about income taxes before the end of the year.
There are other considerations like being single, married, did you work for wages
part of the year and more.
There are many guides that can help you at book store,
libraries and on line.

Good luck, LUCKIEST
Click to view Santa Fe CPA's profile Mogul Santa Fe CPA 67 posts since
Oct 10, 2007
3. Re: Help With Income Taxes Sep 29, 2008 7:00 PM
Hello and Good Afternoon, Laura:

First you sould fnd yourself a good CPA to advise you. That being said, here is my take on your situation.
First, If I am not mistaken you do not truly take posession of the Avon products, you only take orders and then deliver the item when they are shipped through you for the customer. You could have a small sample of some items in inventory. These items rotate through the inventory as you use and replace them; the first cost would be an investment adn the ongoing costs would be expenses.
For other deductible expenses there are you vehicle expenses, either actual expense or mileage rate, however you must keep detailed records of the use of the vehicle such gas & oil, repaierd, maintenance, insurance and so forth. If you obtain a copy of Form 1040 Schedule C, you will find a fairly complete itemization of the various other expense items you may consider.
Good Luck in your endeavor.