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]

It is Young Living Essential OIls

[MichaelL1 · Accepted solution]

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.  

[bpetroschuk]

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.

[mattnjesschester]

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

[MichaelL1]

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