MLM business as an independent wine consultant
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!

CatinaT1
Employee Tax Expert

Business & farm

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

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Michaelgreco2012
Returning Member

Business & farm

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

Business & farm

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.

Privacy Settings