Imagine how devastating it would be to get audited by the IRS and to have your deductions disallowed? I suppose it is possible that millions or billions of deductions were allowed or unnoticed by the IRS over the years and taxpayers also footed the bill for materials that some uplines profited from.
A function where it is mostly socializing and hearing motivational speeches may not be a legitimate tax writeoff for the same reason. I only decided to write this article so that current IBOs and information seekers can seek guidance and advice from credible sources who know the tax laws and can give an IBO sound advice before they can get into hot water with the IRS.
If you receive a nice tax refund because of Amway related expenses, it is likely that your Amway business suffered a nice loss, thus you are simply getting a refund on the income tax that was withheld from your job income.
IBOs also seem misunderstand what a legitimate tax writeoff is.
They get to subtract expenses from their taxable income. Seems cruel but it has happened to IBOs. For example, a standing order of a diamond rally might not be an IRS allowed tax deduction if it teaches you nothing about selling Amway products or increasing business volume.
There was no mention of the intent to profit and increase sales. One of the telltale signs that some IBOs expose about their business is a big lie about making profits from Amway and all the while getting a huge tax refund, thus making their tool purchases "free".
I do not believe IBOs are purposely cheating on taxes, but I believe they are misled about what legitimate deductions are. But one where you are taught to buy from youself and to never quit, might not be allowable.
Tax deductions are allowed for business owners who have legitimate business exepnses to increase their sales. For example, a function where you are taugh how to display and sell products would likely be an allowable deductions.
In the past, I have read about IBOs who were denied tax deductions on Amway business related expenses because their Amway business was run like a hobby or like a social club.
Expenses are allowed when you are able to increase sales as a result of your expenditure.to the business so it remains the best opportunity in the world.
The IBOAI Board meets and collaborates to discuss proposals and make recommendations for positive changes and enhancements to the business, including business guidelines, services, operations, and anything relating to the North American Amway™ business.
Visit billsimas.com to learn more. Sep 02, · Russell DeJager said. As a CPA living in the area of Amway Global Headquarters, I get a fair number of Amway IBO tax returns to prepare. All the returns I prepare have reported income from billsimas.com: Joecool.
Independent Business Owner Compensation Plan for North America (“Plan”), complete the information below: I personally know the International Sponsor and this person is the one that introduced me to the Amway business. Dec 31, · In this video I explain who and what Amway is, how much it costs to start, and how you can succeed in your Amway business as an Independent Business Owner.
The uniqueness of the Amway Business lies in its time-proven Sales & Marketing Plan which on one hand rewards the efforts of Distributors, and on the other, inspires Distributors' potential. It is possible, through the Amway Business Opportunity and. income shown on Form MISC, Miscellaneous Income.
See the Instructions for Recipient (back of Copy B of Form MISC) for the types of income to report on Schedule C.
Small businesses and statutory employees with business expenses of $5, or less may be able to file Schedule C-EZ instead of Schedule C.
See Schedule C-EZ for de-tails.Download