topic The product you are buying for $100 per month I assume is... in Get your taxes done using TurboTax

I am part of an MLM, so I put my income under self employment. To receive commissions and bonuses, I'm required to spend a minimum of $100 on product from this company. Where do I enter that $1200 for the year?

ikcamp — Sat, 01 Jun 2019 04:56:00 GMT

It is Young Living Essential OIls

The product you are buying for $100 per month I assume is...

MichaelL1 — Sat, 01 Jun 2019 04:56:02 GMT

The product you are buying for $100 per month I assume is available for resale to customers.

It would be entered in the inventory section under Purchases.

I put an example below, you would enter your actual inventory on your return.

This is how it works

Beginning Inventory $0 Jan 1, 2016

Purchases $1,200

Ending Inventory $400 (for example let's say you sold $800 worth of the purchases)

Cost of Goods Sold $800 This is deduction on your taxes.

TurboTax does this computation when you enter the Beginning Inventory, Purchases and Ending Inventory.

I'm with YL too. Unless you're doing things differently,...

bpetroschuk — Sat, 01 Jun 2019 04:56:04 GMT

I'm with YL too. Unless you're doing things differently, I suspect your $100+/mo. purchases are for personal use, not inventory for sale, and are not deductible.

So if the items are for resale, or for samples, they woul...

mattnjesschester — Sat, 01 Jun 2019 04:56:06 GMT

So if the items are for resale, or for samples, they would be deductible?

Just put them in purchases and then when you do ending in...

MichaelL1 — Sat, 01 Jun 2019 04:56:08 GMT

Just put them in purchases and then when you do ending inventory and they are gone, they will deducted as Cost of Goods Sold.