Business Tips, Lifestyle

Master List of Tax Deductions for Your MLM Business

Tax season is upon us! Even though the new year has just begun, here in the states, employers are required to send out their W2s by January 31st. Some people are anxiously awaiting their W2s so that they can go ahead, file their taxes, and receive their return. With this in mind, I wanted to provide a list of tax write offs for your network marketing business. My business, as you probably know, is LimeLife so on this master list you will see things specific to the beauty industry. If that’s not you, this list is still VERY applicable. You just need to make some modifications.

Office Supplies

This category is pretty well known but just in case you need a refresher, you can write off any office supply that pertains to your business. This includes but is not limited to:

  • Printer
  • Ink
  • Paper
  • Computer or Tablet (if you’ve bought it in this tax year)
  • Envelopes
  • Office decorations
  • Planners
  • White Boards
  • Pens
  • Pencils
  • Notepads
  • Staples
  • Paperclips
  • Label Maker

Tools for Online Marketing

This category is for people who market their products online, especially applicable for 2020 when a majority of our business was done on social media and zoom calls.

  • Lighting
  • Tripod for your phone or tablet
  • Any Zoom Fees
  • Scheduler App Fees
  • Internet Bill
  • Phone and phone bills
  • Any app fee for editing pictures (for example, I highly recommend Canva Pro)
  • Any stock photo fees

Parties/Vendor Events

As you all know, I represent a cosmetic brand so some of these items may be specific to the beauty industry. I listed them to help give ideas, but you can apply the sample principles to your business.

  • Signage
  • Makeup Applicators/tools/brushes
  • Samples to hand out
  • Tables
  • Chairs
  • Table Cloths
  • Food that is served at the party
  • Business cards that you hand out
  • Mirrors
  • Decorations for the party/show
  • Party favors
  • Prizes for home parties
  • Products that you display

Business Supplies

This can include a whole slew of products, essentially its everything that you have purchased to help your business.

  • Start up costs, like a starter kit or join fee
  • Blitz Cards
  • Business Cards
  • Thank you cards
  • Product organizers
  • All marketing materials like posters, brochures, business cards, catalogs
  • Go Daddy website name
  • Yearly membership fee
  • Monthly website fee
  • Tax Preparer fee
  • Training event ticket
  • Uniform
  • Business related banking fees

Travel/Entertainment

  • Travel expenses
  • Travel makeup trunks
  • Flight
  • Car rental
  • 50% of Food
  • Hotel stay
  • Gifts for Downline and Upline
  • Gas mileage (you can download apps to your phone to help you keep track)
  • Gas to events, deliveries, one-on-ones, meetings, lunch with potentials, etc.
  • 50% of Meals with clients or potential recruits

Shipping

  • Stamps
  • Shipping labels
  • Tape
  • Boxes
  • Address label stickers
  • Label printers
  • Envelopes
  • Postage
  • Bubble mailers
  • Bubble wrap

Home Expenses

This category gets a little bit touchy. The government is very strict about what you call a home office. Just because you work from your couch, doesn’t mean that your living room is an office. You need to use the space exclusively for your business. Its very important to talk with your tax preparer, especially when it comes to this category.

  • Percentage of your home mortgage for office
  • Percentage of your property taxes
  • Percentage of your mortgage interest
  • Percentage of your homeowner insurance
  • Percentage of your utilities
  • Office repairs you’ve made throughout the year

Did I forget something? Leave it in the comments!

Hope this helps!