MLM business as an independent wine consultant
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lannaly
Level 1

MLM business as an independent wine consultant

Hi! I signed up to be a consultant for a wine company and I purchase wine for tasting events. Are my wine purchases considered a business expense and would I enter that under the Supplies section? Thanks!

3 Replies
CatinaT1
Employee Tax Expert

MLM business as an independent wine consultant

Yes.  The wine you are using for events would be supplies and an expense for your business.

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Michaelgreco2012
Returning Member

MLM business as an independent wine consultant

As a wine consultant we purchase numerous wines as market research to maintain knowledge for wine consulting.  Is the purchase of wine and traveling to wineries deductible?

ToddL99
Employee Tax Expert

MLM business as an independent wine consultant

Yes, the cost of wine and travel to wineries would be deductible expenses for a bona fide wine consultant.

 

From the IRS What Can I Deduct?:  To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.

 

Only business-related expenses are deductible. Since wine and travel can also be considered as personal expenses, make sure you are operating as a business - not a hobby.

 

See Is it a hobby or a business? for considerations in determining whether your activity is a business.

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