Understand Your MLM Tax Deductions

There are a number of MLM tax deductions you can take even if you do not take a deduction for your home office.

I will list several of them so you have an idea what is or may be deductible.

Office Supplies - Even if you don't take the home office deduction, you can deduct the business supplies you buy. Hang onto your receipts, because these expenditures wil offset your taxable business income.

Furniture – When your office supplies are more than just pens and paper, you have another tax-cutting opportunity.

Other Equipment – Items such as computers, copiers, fax machines and scanners also are tax deductible.

Software and subscriptions – It is best to look up the current laws when deducting these types of things.

Mileage – If you drive for business, the IRS wants to give you some of your money back.

But Uncle Sam loves documentation, so keep a notebook in your vehicle to record the date, mileage, tolls, parking costs and the purpose of your trip.

The mileage deductible varies all the time so you must look this information up to ensure you are calculating the correct amount.

Travel, meals, entertainment and gifts – Good news here! Small business travelers can enjoy these MLM tax deductions. You may as well stay in a nice hotel because the entire cost is deductible, but watch out for those meals! When traveling you can deduct only 50 percent of your meals while traveling.

Insurance Premiums – Is your MLM company full time work? The good news is your health insurance premium is deductible too.

Retirement Contributions – Don't forget to deduct your contributions to your SEP-IRA.

I'm sure you are beginning to see you have many MLM tax deductions with your home business. Take advantage of them, but understand them. Here is how you can better understand your deductions.