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Old 01-14-2008, 05:02 PM   #1
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Question Taxes for SU! Demo's

Does anyone know what the tax "rules" are for being a demo? I know you can write off your own products for parties, etc. But what about the rest, i.e. - customer purchases, etc?
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Old 01-14-2008, 06:01 PM   #2
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Julia,
You might get a demo to tell you what they do, but unless they are a tax accountant, you may want to go to a professional. I do my own taxes and I am comfortable they are done correctly, but I don't even tell my own DL how to do the taxes. In my opinion, it's just best to get the info from a professional. Good luck!!
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Old 01-14-2008, 06:04 PM   #3
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I'm not exactly sure what you are asking. But, customer purchases are not expenses. You are taxed (Self emlpoyment tax) on the income you earn from the sale. Be sure anything that you declare as an expense has backup to substantiate the amount you put down.

If you want to know for sure what you can claim and what you can't, ask your tax professional.
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Old 01-14-2008, 06:05 PM   #4
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Oops. Sheryl posted when I was typing.
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Old 01-15-2008, 02:36 AM   #5
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Unless you only use your SU products for demos/workshops, you can't write them off. Well you can write a portion of them off, but I usually don't. Gas to and from workshops/demos/parties, you can write off as long as you don't stop anywhere else. Your kit is a write off and your website should you have one. You pay income tax on the money you make, your profit, your class fees profit, etc. If you declare a loss for 3 or more years, then the feds will consider it a hobby instead of a business. Keep excellent records. Filling out Schedule C is not a difficult thing.
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Old 01-15-2008, 04:27 AM   #6
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Great question. Anyone who is a demo for any company or is thinking of becoming one needs to become familiar with the tax implications.

If you are in the US, please check out the IRS website and its many publications. One good place to start is http://www.irs.gov/newsroom/article/...169490,00.html

Getting advice from other demonstrators is a mistake, regardless of how accurate or well meaning the demo is. Laws change and the laws themselves are complicated.

If you have any questions about how and whether you are entitled to claim business expenses and must report income, you should take the time to read what is on the IRS website and then invest in a session with an accountant -- one who is familiar with income and expenses from a home based demo business.

Since this is the beginning of the very busy tax season, I recommend making that appointment sooner rather than later!
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Old 01-15-2008, 05:42 AM   #7
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You don't need an accountant to figure out tax laws. You can use HR Block.
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Old 01-17-2008, 04:11 PM   #8
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Thanks everyone
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