AMWAY Expenses

[Parinayakosol_5225]

My son sign-up with AMWAY. During last year, he purchased products to be delivered to his clients and also for his own use. Can these expenses be deducted from his business? How about his membership fee, conference, Air BnB, meals, etc. can these also be deducted?

What form do I need to use for this?

[Vanessa A]

If it was personal expenses, they can NOT be deducted from his business. The products that he purchased to be delivered to clients, he can deduct as a supply expense for his business.

The Air BnB, and meals, can be deducted if they were due to business and not personal trips.  

Membership fees and conference expenses are deductible as long as they are related to his business and not just purchasing items for himself. 

 

[Parinayakosol_5225]

Thank you.

[Parinayakosol_5225]

These are my follow-up questions.

1) If he join a health club to use as an opportunity to find clients, can this expenses be claim as deductible.

2) The trip to conferences. If he shared expenses with some of people during the time at the conference, i.e. gas expenses, lodging, etc. Is there a guideline for this? What kind of proof that he needs to produce?

3) Where do I enter this in TurboTax Deluxe?

Thank you.

[DawnC]

1 - no, only ordinary and necessary business expenses can be deducted.

2 - he can deduct what he paid for those business expenses. 

3 - business expenses are deducted on Schedule C - they will offset business income.   TurboTax Deluxe Online only supports self-employment income - you will need to upgrade to Premium to deduct business expenses.

If you are using the desktop product, you do not need to upgrade, you can enter Schedule C income and expenses in any version with the desktop program. 

Where do I enter Schedule C?

What self-employed expenses can I deduct?  

Where do I enter my self-employment business expenses, like home office, vehicle mileage, and suppli...

Can I deduct travel expenses?