Tax Benefits and Advantages of Networking Marketing & Home Based Business

Tax Benefits and Advantages of Network Marketing and Home Based Businesses

With income tax season here, this is a great reminder for those who have a home based business; to take advantage of the income tax benefits of having a home based business (as well as network marketing, or MLM business). Some people get involved in home based businesses for the very reason of using these income tax benefits to offset and reduce income.

Starting your own network marketing, MLM, or home based business brings you SO MANY benefits, but one benefit that I will be writing about today is on the tax benefits…  since tax season is here. There are many things to consider when joining a MLM, Multi-level marketing, network marketing, home based business- but here are some of the perks!!!  Smile
Here are the tax advantages–and for some this is a key advantage to joining, or starting ones own business.

Most all network marketing companies have a monthly auto-ship program that a member has to be on to qualify for all commission bonuses. Guess what? Your monthly auto-ship is 100 PERCENT TAX DEDUCTIBLE! So product that you are using day-to-day, can be written off!

Other tax advantages to your home based network marketing business are the  obvious expenses you can deduct, such as:

  • A portion of your rent or mortgage – your business has to pay rent and that includes home-based businesses. Some of the amount that you pay each month in rent or mortgage payments can be counted as a business expense.
  • The cost of your computer or laptop
  • Office equipment and furniture – office desk, office chair, computer, software, telephone, printer, lighting, etc.
  • Internet connection
  • Phone bills
  • Your vacations and company events – This benefit can be huge! You’ll be able to deduct the cost of the plane ticket, hotel expenses, food, entertainment. A great excuse and benefit to business related travel!
  • Conferences – There is no faster way to super-charge your business than to attend a conference. You’ll get a fantastic business education, get a chance to network and best of all get to write off the expense.
  • Restaurant meals – Take out members in your down-upline, up-line, or anyone you talk to about your home based business.
  • Groceries – Your home office needs some food for visitors or for team meetings. It is unlikely you will get away with your entire grocery bill but food you consume for home events and visitors is a legitimate deduction.
  • Some car expenses- gas, mileage, and vehicle maintenance are all expenses that can be a tax write off.

Even though it’s income tax time…dreaded time of paying taxes, making RSP contributions, etc… The good news is that by joining any network marketing company there are tax deductions that you would not have been able to deduct if you did not have a home based business.

*NOTE: Always consult with a tax professional with your unique business situation to be fully aware of your tax benefits.

Trackbacks

  1. […] Tax Benefits and Advantages of  Home Based Businesses … […]

Speak Your Mind

*