Mary Kay Tax Question ....?

Mary Kay Tax Question ....?
I am a Mary Kay Constulant and I have not bought any wholesale therefore I am not selling any. I got rigged into buying the starter kit and I wanted to wait a year and then sign up under someone else but since Christmas is right around the corner I think I am going to go ahead and buy some product just go give away as a gift. With a family of girls it is the best thing for me to do. But my question is if I buy product and do not sell it just give it away as gifts what happens when its time to fill out taxes and stuff. I am a college student and I dont know much about how the tax system really works and I need help from other MK ladies!! I would ask my director but I refuse to talk to her on the telephone because she is always bribbing me to sell something or get free gifts therefore I only email her and when I do she never emails me back! I need this help fast!!


Answers:

jhvnmt:  All I can tell you is that Arbonne has better products with a better compensation plan and you can sign up as a consultant only for the purpose of buying wholesale without ever being pressured to sell anything! Sounds like you signed on with the wrong company. check this out for more information... http://HealthSpa.MyArbonne.com
2006-11-27 10:31:08
dharma_claire:  Basically my understanding is that gifts are tax deductible. If you did not have any income on which to pay taxes, there are no taxes to deduct the expense from. When you fill out taxes you will have no income, just business expenses. On the plus side you will not owe them any money. Log into the marykayintouch.com site with your consultant ID # and click on the "Learn MK" there is a lot of tax info. Sorry I couldn't help more but I am new at this myself! PS - it's not about which company you pick, it's the particular people you work under, my step mom has been harrassed incessantly by Arbonne reps trying to get her to take out a loan so she can invest a few thousand on her kits. My recruiter is GREAT and while the director has tried to get me to make larger wholesale purchases than I can afford, I am just sticking to my plan and it will be fine!
2006-11-27 13:48:25
Kerry B:  As a Sales Director, my best advice is to check out the Intouch website. Do you still have access? There is a whole section on tax information and it's been very helpful to me in the past. I'm pretty sure though that you'd need to work your business as a business to get the benefit. BUT you should be able to write off your starter kit at the very least. Plus make sure you keep track of your mileage (you can get these cheap little mileage logs at Office Max), and any receipts for cotton balls, q-tips, etc. Those are the easiest write offs!!! Let me know if I can help more! It unfortunate when you run into a situation like yours! It shouldn't be that way for you. I'm happy to hear though that you are going to give it a second chance. Have you called the company directly? They are VERY helpful too!!!
2006-11-27 17:04:23
Chosen Answer
thinkpinkmeghan:  I don't think you signed up with the wrong company, just with the wrong person like you said. Being with the right people makes SUCH a difference! You are smart to stop for a year and then re-sign after the system has dropped you. In the meantime, you will list all of your MK investments as Business Expenses. Then since you aren't selling any, you won't have anything to list under income. It is an investment whether you keep stuff in your house for inventory or give it away, because either way you didn't sell it. If you give away quite a lot for christmas, you can list it as business donations/losses. I do know you can call the actual MAry Kay company to ask tax questions... not your director, the actual company. Good luck! I am so sorry this hasn't been all you've hoped for. Even though you wouldn't be associated with me in any way, I would be more than happy to talk to you anytime. Just email me or whatever. My mom did Mary Kay for years and I am qualifying to become a director so I am still learning, but do have some advice. Plus, I'm not going to try to get you to do anything! Don't let anyone tell you its a bad company, though. Every company has bad people to work with, that's just life. Too bad you had to deal with it this way, though.
2006-11-30 12:49:39