Avon representatives should report their income and expenses on a Schedule C. They will be required to pay taxes on their net income, which is the amount of income left after all expenses are deducted. For many Avon representatives, their expenses will exceed their income for the first few years of their business.
Avon representatives buy sale brochures every other week. The cost of these brochures is tax deductible. Also, other supplies purchased from Avon such as perfume samples, makeup samples and demonstration products are tax deductible. Avon representatives should keep invoices included with their Avon shipments to use as verification of their Avon expenses.
Office Equipment and Supplies
Avon salespeople can deduct any office expenses incurred as part of their Avon business. Such expenses might include computer equipment, printer, printer ink, fax machine, software, office furniture, copy paper, pens, pencils, notebooks and receipt books. All equipment and supplies should be used regularly and they should be used primarily for business purposes.
Avon representatives can deduct any advertising costs. Advertising costs include business cards, website maintenance fees and the cost of listing advertisements in the phone book or in newspapers. Also, advertisements placed in yearbooks or other community programs are tax deductible.
Home Office Deduction
Avon representatives will need a home office to successfully run their business. A home office can be a room designated as an office or it can be an area within another room such as a corner in your family room or an area in your kitchen. A home office deduction allows Avon representatives to deduct a percentage of their household expenses such as mortgage interest and utilities that's equal to the percentage of their home used for their business.
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