- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
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!
Do you have an Intuit account?
You'll need to sign in or create an account to connect with an expert.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
MLM business as an independent wine consultant
Yes. The wine you are using for events would be supplies and an expense for your business.
**Mark the post that answers your question by clicking on "Mark as Best Answer"
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
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?
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
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.
Still have questions?
Make a post