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Not applicable
posted Oct 8, 2022 1:29:17 AM

MLM Direct Sales Product Deductions

I am a consultant with multiple direct sales companies. I buy products from all of these companies that I use partly for personal use, and partly for demo and marketing business use. Can I deduct a percentage of the cost based on the percentage of time they are used for business similarly to deducting a percentage of my cell phone cost based on the percentage it’s used for business use? Or, if I use them for any personal use at all are they not deductible? 

0 2 400
2 Replies
Level 15
Oct 8, 2022 5:57:13 AM

You must REMOVE the personal use items from the inventory figure ... easiest way to do this is make a separate order and pay with personal funds. That way the purchase and the payment never shows up in the business books or accounts. Demo products can be expensed. 

 

Not applicable
Oct 8, 2022 12:53:29 PM

I understand that I wouldn't be able to deduct items that are purchased solely for personal use. What I'm not clear on is whether I can deduct all or a portion of the cost of products I've purchased from the direct sales companies I work for that are used for both business (demos, marketing, advertising) and personal use.