Taxes and Network Marketing

April is a great time to refocus and make sure you are taking advantage of all of the benefits of being a BellaVita distributor/business owner.

Your network marketing business makes you a home-based business owner. Fortunately, there are a number of tax incentives for running your own business in the United States and other countries.

Knowing this will help you throughout the year to track certain expenses and spending and make sure all of your bookkeeping is in line before it’s crunch time to file your taxes each year. Taking advantage of available tax benefits can definitely help boost your overall income for the year.

Here are a few items you might consider as tax write-offs for your BellaVita business:

Initial investment: This is the cost associating with getting your business started, which could include training materials, products to sample, etc.

Operating costs: Keep track of the cost of your computer, phone, and other devices needed to run your business. This includes equipment, but also the cost of telephone and Internet services.

Car expenses: If your car is used for your business, it’s possible you can write off mileage, fuel, repairs, maintenance and even its depreciation.

Business tools: Software and other various business management tools are great help for keeping your operations running smoothly. It might be an investment up front, but at least you may be able to include it on your business taxes.

Marketing materials: The cost of promoting your business can be a tax write-off.

Prospecting expenses: If you’re spending money on events to present to potential business partners.

Percentage of living expenses: A percentage of your rent or mortgage could be a tax deduction for the space you use to operate your business. This may also apply to a percentage of your utility bills, and even household maintenance/improvements that impact your home office.

Travel and accommodations: This could include travel for training, classes or other business building events. These costs can quickly add up, so being able to deduct them could be a huge advantage for network marketers.

Education and training: Anything you do to better your business can be considered a business expense. Classes, training, whitepapers, webinars, certifications—those are all something to think about.

*Each state and country varies on what business owners can deduct from their taxes, so it’s important to consult with an accountant or tax professional on what can and cannot be included.

When you consider the costs associated with running a business along with what can potentially be written off, there are significant advantages to owning your own network marketing business.