Direct Selling Tax Deductions Saves $

Direct selling tax deductions are one of the top advantages of working from home.

Operating a direct selling business from home opens the door for many income tax deductions.

Did you ever notice that all rich people have a business?

  • Did the business make them rich?
  • Or did they get a business because they were rich?

direct selling tax deductionsChances are they developed a business so that they could take advantage of certain tax benefits and that in turn assisted them in gaining more wealth.

The home business is a legitimate income tax reduction program that the IRS/CRA/ATO (or whatever the tax agency is called where you live) has put into place.

Anyone who owns a business has a legal income tax reduction package to utilize to their advantage.

Direct Selling Tax Deductions = Recruiting Tool

Learn More About The Direct Sales Recruiting University!The direct selling tax deductions are an AWESOME recruiting incentive!!

Leading with the direct sales tax deductions is discussed in great detail in the Direct Sales Recruiting University.

Making money sounds like a lot of work but saving money… well who could say no!

If you are an individual or family struggling financially, the quickest way to increase your cash flow without a major time commitment is to start a direct sales or network marketing business.

The income generated from your new business will of course be helpful and the immediate income tax reduction will increase your cash flow substantially!

When a direct seller writes a direct sales marketing plan with an intent to profit they will save tax dollars!

Save With Direct Selling Tax Deductions

For example in a direct selling business many of the things you are now spending money on will become an income tax deduction.

  • Cell phones: even shared family plans
  • Magazine subscriptions or cable TV, depending on your company, can be considered as market research
  • Mileage to and from general errands that you are doing for your family can be deductions provided you intersperse business errands and lead-collecting in with the daily activities. Imagine deducting 60-80% of all your miles traveled, at 57.5 cents a mile…. That will really add up quickly!
  • Meals out and entertainment  can also be deducted provided you talk business and ask for referrals from your friends.
  • Are you taking vitamins? When you are in a vitamin network marketing company, the vitamins may be deductible.
  • Do you buy groceries? In a food-related company, a good part of your grocery bill may be deductible for market research, even if your family is eating the food.
  • Are you giving the kids an allowance? Are your kids ages 7-17? How would you like to pay them for errands around the house, or helpful things they do, then take those payments as an income tax reduction?

Are you starting to see why all people with money have a business?

These are things you will always spend money on. When you have a direct selling business they become income tax deductions.

That alone will increase your cash flow, even if your business does not make money immediately.

NOTE: We are not giving you legal advice or advising you on your income tax. Please talk to a knowledgeable direct sales-specific accountant regarding your personal situation.

Income Tax Deduction – Home Office

Another income tax reduction strategy available to direct sales consultants who set up a home office is the home office deduction.

It never ceases to amaze me how many people do not take advantage of this strategy.
Red Flag
Many successful individuals say, “I do not want to send up a red flag.” Or “My accountant won’t let me because it is a red flag.”

The government does not create laws just to “catch” people and get them in trouble when someone uses the law as it is written.

There are no flagpoles down at the tax office!

Think about this…

When you open a store at the mall or in a shopping center, you will buy toilet paper, floor cleaners, light bulbs, maybe put up a sign, and even wash the windows, take out the trash, pay rent or cut the grass.

As a business owner you can deduct all of those from your taxes. This will not put up a red flag because these are business expenses.

Everyone can understand that.

In your home business, you still have all those expenses affiliated with your business. Only now they are a percentage of your home expenses.

The home office deduction recognizes that as a home business owner, you can deduct a percentage of your electric, your gas, your garbage, your telephone, toilet paper, cleaning supplies, etc.

This is the home office deduction.

Recruiting With The Direct Selling Tax Deduction

The direct selling tax deduction should be a major focus in sharing your opportunity.

Small sprinkles in your show to create desire about paying less taxes will go a long way toward creating desire for the opportunity.

Saving money sounds easier than starting a business!!

Share this article with your team and teach them how to recruit by leading with the tax savings!

A little education goes a long way when you are focusing on growing a team.

NOTE: We are not giving you legal advice or advising you on your income tax. Please talk to a knowledgeable direct sales-specific accountant regarding your personal situation.


    Shared by: kathy hill:

    This is a great blog to read annually and remind ourselves to take advantage of the deductions available. I love the recruiting factor tips as an added benefit

    Shared by: Kathy Jenks:

    You have definitely touched on a subject that is much needed because a lot of people who are in this profession (and others who don’t join because of the cost), don’t know of the tax savings that are allowed because they have a home business. One of the main reasons I started a home business, besides creating a legacy for my family, was the money I could save on taxes. I have listened to Ron Mueller and sandy Botkin for a few years now and they do a great job of training home business entrepreneurs on how to save money on our taxes with legitimate business write-offs and what documentation is needed.

    Shared by: Mandy Voyce:

    I remember reading this one last year, but opps, totally forgot to add it to my recruiting seeds. Now it’s going on the list :)

    Shared by: Karla Jones:

    I never in a million years thought of tax deductions as a recruiting tool, but they totally are. I will definitely sprinkle those seeds in my presentations.

    Shared by: Joy Hampson:

    Love love love this!!!
    I never thought to use tax incentives as a recruiting carrot! Brilliant.
    Is there a program or system you recommend for keeping track of all of these deductions?

    Shared by: Theresa Pyle:

    Wow… this was NEVER offered to me as an incentive to join OR has it been presented to me in such a wonderful way!!!! I love every bit of this! Thanks so much!

    Shared by: Rebekah Gienapp:

    My favorite deductions are the home office deduction and mileage (I always figure out ways to combine by personal and business errands.)

    Shared by: Jessica:

    Yes!! I will definitely be implementing these strategies next month when I get ready to file!!

    Shared by: timberland???:

    Hi! We found your great site with AltaVista and it??s great!

    Shared by: Kim:

    I will definitely be adding this to my recruiting and events! Thank you once again!

    Shared by: Maria Savich:

    I always sprinkle the tax benefits in my show. I saw the big tax benefit in 2013 and share it every party!

    Shared by: Lauren Kelly:

    So worth the time it takes to be organized. I always remind people if they are thinking of starting a ds business this is a great benefit to starting one.

    Shared by: Dawn:

    that time of year again! this article always comes in handy!

    Shared by: Linda Rennie:

    Most people don’t start a biz for the deductions, but the deductions sure sweeten the pot when there is a list of some of the common ones, most of which pertain to us in general. And, for busy people (who isn’t), it helps to see how easy it is to incorporate a biz into our lives- either part-time or full-time. Good article and reminder!

    Shared by: Linda feagin:

    All very true info! I have enjoyed these deductions for years adding income to the family by saving on taxes!

    Shared by: Kathy Nicholls:

    A great reason to be in business and it really does help! This shares some great reasons to share with others when having those sponsoring conversations!

    Shared by: Mandy Voyce:

    This being my first year in business I expect to have zero profit with deductions. It is nice to have the chance to write off so many things.

    Shared by: Linda Melenka:

    I paid a lot of extra money to taxes last year because I did not utilize all the tax advantages that I could have, I did not want the tax man knocking on my door! This year is going to be soooo different.

    Shared by: Jennifer Trapp:

    Yes, you need a good accountant to make sure that your deductions are appropriate!! I have talked to many reps about taking these deductions and they are always afraid to because of possibly causing them to be audited by the IRS! If you have a home business you need to take advantage of the deductions that are given to you!! Find an accountant that specializes in home businesses or, at least, knows what they are doing regarding home business deductions!!

    Shared by: Jo:

    Some great reminders here!

    Shared by: Rebekah Gienapp:

    I’m planning on overhauling how I talk about our business opportunity, and definitely want to find a way to include tax benefits.

    Shared by: Melissa Koterba:

    I’m so glad this was done. I always had questions about taxes & what you could write off what you couldn’t write off so this was extremely helpful.

    Shared by: Rachel:

    This is the end of my first year in business and I have to admit that I have been terrible about keeping receipts, records, and mileage. I’m actually afraid I am going to have to pay in this year even though I didn’t make a huge sum of money. It’s totally my fault. I will do so much better in 2015! Please learn from my mistake!

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