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Direct Sales Tax Deductions

Updated on February 12, 2017

Direct Sales Tax Deductions

All direct sales companies, or home based businesses, have many different tax deduction options that can help you save money when you begin to file your taxes each year. When you have a direct sales business, you should do your best to take advantage of all the tax deductions that are available to you for the direct sales business that you are involved with. When you do use all your tax deductions you can greatly reduce the taxes that you owe each year, and in some cases, eliminate the taxes you owe all together. In very rare cases you could even possibly receive a tax refund. When you are running any kind of home business, including direct sales businesses, you need to know everything you can about every aspect of that business, including the tax deductions that are available.

I am not a tax professional by any means, but these are things I have learned from personal studies through the internet and other sources. I also have an Associated Degree in Business Management. You should always consult a tax professional if you are unsure about the deductions for your direct sales business.

I personally recommend H and R Block, but just be sure you choose someone that is very knowledgeable about your work at home situation. Every direct sales or work at home situation is different depending on the company and type of business that you have. Do your research before making a final decision on any tax professional. Not all tax professionals are created equal, and some may get you into more trouble than you could have ever imagined. This is your money that they are dealing with, so be sure you make the choice that works for you.


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Find your local IRS office

A markerIrs -
IRS, 825 East Rundberg Lane, Austin, TX 78753, USA
get directions

Document all of your Direct Sales Tax Deductions

Before I begin on the actual tax deductions for your direct sales business, I would like to remind you to keep records of absolutely everything that you spend money on to document your direct sales expenses that could possibly be tax deductions. I find that having a spreadsheet with all your income and expenses works great, then you can attach all your receipts and documents directly to the spreadsheet. This will help you to maximize your deductions, and keep yourself prepared in case you ever have to show documentation of your tax deductions (TAX AUDIT). I tend to shop at local office supply stores, such as Staples or Office Depot, to purchase files, binders, and other office items that I may need to keep great records of all my tax deductions. Keeping records for your direct sales business is essential to get the most out of your tax deductions each tax season. Organization is very important, not only to help your company become more successful, but also to maximize your tax deductions. Find a method that works for you, and your individual situation. You may need to try different things, but you will discover what works for you and you direct sales business.

An Ebook that I wrote to share my experiences with finances and credit

Home Office Deductions For Your Direct Sales Business

Your direct sales home office holds the majority of the available tax deductions for your direct sales business. Be sure to keep up with the receipts for each and every purchase so that you can deduct everything that is available to you when tax times come around each year. Even the smallest amount can make a difference in the amount of taxes you may owe during tax season, or possibly the amount you will get in a tax return.

1. Office Space (if used exclusively for your home business)

2. Office Equipment (printer, computer, fax machine, external hard drive, etc)

3. Ink or cartridges for your office printer

4. Printing Paper for documents or flyers

5. Document Files or folders

6. Office furniture (Desk, filing cabinets, chairs, shelves, etc)

7. Pens, pencils, highlighters, etc.

8. Paper clips or paper organizers

9.Tape

10. Notebooks or notepads

11. Stapler and staples

12. Subscriptions to magazines that are about direct sales or the merchandise that you sell. Also magazines or books about running a business.

direct sales party
direct sales party

Marketing and Delivery Tax Deductions For Your Direct Sales Business

Direct sales comes with a lot of marketing for your company and delivering of products, which can be one of the biggest tax deductions for your business. These deductions will include all of your marketing techniques; traveling, ads in newspapers, promotional parties, lunch with potential customers, or even simply printing flyers for your direct sales business. These are just some of the techniques that are used, but not the only deductible items for you.

1. Gas or Mileage for deliveries, promoting, or any business related travel.

2. Business Card for your direct sales business

3. Personalized letter Heads

4. Tolls for delivering products or business meeting

5. Parking

6. Meals (as long as it is a meal discussing the business in some way)

7. Web Hosting or design

8. Online Marketing

9. Entertaining for your potential customers

10. Party expenses (Food, Gifts, Samples, etc.)

11. Promotional Gifts for your customers or non profit donations

12. Logo Designs

13. Logo Printing on your business items

14. Brochures for your products

15. Samples of your products

Keep up With Your Direct Sales Business

Other Tax Deductions For Your Direct Sales Business

There are a numerous different tax deductions for all direct sales business. The deductions you may choose to use will depend on exactly how involved in the business that you are now or possibly how involved you will be in the near future. This is a list of different deductions that you may or may not have in your particular direct sales business.

1. Lodging while traveling

2. Advertising for your business

3. Business Bank Account fees

4. Checks for your direct sales business

5. Shipping of your products or correspondence

6. Stamps for anything related to your home based business

7. Cell Phone that you use for your business

8. Home Phone or fax number that is exclusively for your business

9. Business Classes online or in person

10. Computer Software

11. Tax Software

12. Business Software

13. Booth Rentals to sell your products

14. Online Classes related to business

15. Books that are related to your direct sales business

16. Labels for shipping or promoting

17. Inventory storage at your home or elsewhere

18. Training in any form that will help your business

19. Helpers fees for those that help you grow your direct sales business

20. Shipping supplies

21. Utilities (Portion)

22. Professionals such as a tax professional, financial advisers, or organization specialist.

23. Admission to seminars or shows

24. Legal fees

25. Insurance

Your Direct Sales Tax Deductions

About What Percentage of these Tax Deductions do you use? If you know more deductions, please share.

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Documentation

I cannot push it enough to help with your tax deductions. If you are in direct sales, be sure to document everything. Having the proper documentation can help you grow your business by showing you what is working. Also, having proper documentation will help you maximize your potential tax deductions each tax year. The one thing I have learned through the years of working at home, every piece of paper should be kept for seven years for your own protection and for the growth of your direct sales business. Good luck on your successful journey in direct sales.

Other Helpful Hubs

I have worked from home for a number of years, and in doing so I have learned quite a bit. As of December of 2014 I received a degree in business management. These hubs are a combination of things that I have learned through the years of working from home, being a manager in a variety of businesses, and the things I have learned through my work towards my business degree. I hope you can find them helpful.

Freelance Writing Tax Deductions

Direct Sales Business and Advice

Promoting AVON

Reducing Home Based Business Expenses

I will be working on more business hubs to help others that are wanting to work from home and make a real income doing so.

© 2011 Nona Weeks

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    • profile image

      pantine 5 years ago

      Nice lens.Thanks for sharing. Project Management Software

    • profile image

      roony672 4 years ago

      Very informative lens

    • profile image

      anonymous 4 years ago

      Very good information especially for someone just getting started on the Internet. It is a also a great reminder for those of us who have been in direct marketing for awhile. Good Job.

    • nonaweeks profile image
      Author

      Nona Weeks 4 years ago from Florissant, CO

      @anonymous: Thank you

    • shellys-space profile image

      Shelly Sellers 4 years ago from Midwest U.S.A.

      Tax time will be here before you know it! I'm already checking my deductions :)

    • profile image

      staceysprague11 4 years ago

      Love this! Thank you!

    • profile image

      BethKilburn 3 years ago

      I really like this list! A while back, I linked this page on my team's website. I do wish there was a way to easily get a printer-friendly version.

    • SilverLotus1 profile image

      SilverLotus1 2 years ago

      good lens!

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