Tax Tips for Your MLM Business

Filed in archive MLM Tax Tips on February 10, 2010

Tax tips for your MLM or network marketing business may include claiming home office expenses.

Tax Tips for Home Business Owners - powered
by eHow.com

But when doing so, tax preparer Tom Choisnet advises, avoid being overly agressive when taking deductions.

Some takeaways (see the full video):

• MLM businesses generally end up with expenses roughly equaling earnings so any money you do make is often tax free
  


• Home offices can be deducted so long as they are clearly set aside for that use as prt of your multi-level marketing operaton
  


• Mileage and travel can be deducted if done for business purposes
  

However, Choisnet cautions against taking big losses unless you have a very good tax record.

In fact, according to a recent report from Investopedia, simply owning a small business is enough to draw added attention from the IRS at tax time, so be sure your deductions are justified.