Did you know that you can deduct the majority of your sports hobby expenses such as cycling, golf, bowling, etc. as legitimate deductible businesses expenses?
Here’s how. Whatever your hobby is, as long as your are conducting it with the intent of promoting your network marketing business, your expenses are deductible!
Using Golf as an example, let’s say that you spend the following:
Golf shirt embroidered your Company’s emblem (advertising) $75
Company logo embroidered athletic socks (advertising) $20
Golf shoes adorned with Company or Product logo (advertising) $200
Golf Clubs wrapped with Company or Product logos (advertising) $800
Golf bag with Company or Product logo emblazoned on the side (advertising) $200
Product samples on the course (promotion) $100
Green fees to prospect and promote your Company’s products $100
Add it all up <$1495.00> in business expense deductions x 30% average combined federal and state tax brackets = $448.50 in tax savings. This is a direct reduction or actual savings in your golf expenses!
Now if your golf country club membership is $5000 per year, that would be another $1500 saved in taxes. ($5000 x 30%). How would you like to receive a 30% discount on your annual country club membership fees? (:o)
Note: Be careful not to get tripped up on the 50% allowable entertainment expense deduction. If you are purchasing green fees, food or beverages, etc. for a prospect, the IRS classifies this as an entertainment expense and you are only allowed to deduct 50% of your prospects expenses. And you must discuss your Companies product or opportunity, before, during or after your outing.
For an explanation of how this works see pages 9-11 in my book, “How To Deduct Almost Everything! …And Have Uncle Sam Pay You!”
Network marketing is really the perfect home based business, especially from a tax standpoint. (See pages 6 -7.) It is your independent contractor status that makes all of these business expense deductions possible. You receive your income via a 1099 vs an employee who receives a W-2. (See page 42 for an explanation.)
As always, be sure that you review this tax savings strategy with your competent tax preparer.
How do I know if my tax preparer knows this? Pages 37 – 40 will answer this!
And remember, as long as your are conducting your business in a businesslike manner, Uncle Sam will pay you to build your business! How?
Through the tax savings!
Glen E. Polcyn, CFP