Mary Kay® Tax Deductions: 11 Common Missed Write-offs

Mary Kay® Tax Deduction 1040 formHopefully you only want to pay the taxes that you owe. To make that number as low as legally possible you need to make sure you take advantage of all the tax deductions you allowed to you. Most people know they can write-off their expenses like business meals and office equipment, but I wanted to share a few you may not have thought of. As always, these are just some ideas and not tax advice. Please consult the IRS or a tax professional to find out the laws for your state.

Mileage – Though it varies by state, you can usually deduct your mileage costs when used for business. Did you drive to any events or deliver any orders this year?

Car Insurance – If you use your car primarily for business then associated expenses like insurance are deductible.

A portion of the car payment/lease – Again, if used primarily for business.

A portion of rent/mortgage – Most Mary Kay® consultants don’t have a retail site or office. They use a home office which makes at least a portion of your rent/mortgage deductible.

Travel – If business-related or if business is done during the trip you can deduct hotel/lodging, car rental, parking, etc.

Uniform costs – only if used for business. Ask yourself if you would have purchased this if not in business.

Demo Supplies – sample products and supplies used to try those products like cotton balls, mirrors, brushes.

Business telephone line – if used exclusively for business

Prizes – Items you give your consultants/recruits for recognition and incentives.

Accounting fees – If you pay an accountant you can deduct the tax prep fees.

Postage and freight – Do you mail catalogs, birthday cards to your customers, products to your customers?

The first step in taking any deduction is keeping a record of it. QT Office makes it easy to keep track of your expenses. Many are recorded for you automatically. When you import your order QT will record the expenses for Section 1, Section 2, taxes, and shipping. Other things are easy to track including general, office, event, and automobile. Then at the end of the year (or anytime during the year) you get a tax report with all your income and expenses that you can print or email to your accountant.

So make sure you pay your “fair share” and not a penny more. If you use QT Office to run your business and track expenses, remember that you can deduct the price of QT as well.

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This entry was posted in QT Office® on December 04, 2012