Beachbody Coach Expenses

[Zee]

Is anyone familiar with this company? It's a multi-level marketing LLC selling nutritional products, excercise videos, etc. The products are marketed through coaches that enroll others, etc. Coaches are being told that they can deduct products personally consumed because there is a minimum purchase requirement for coaches. The agreements, however, state there is no purchase requirement but there is a minimal sales requirement to remain an "active coach" that can be satisfied by a personal purchase or sale. The product is expensive (about $89 monthly). My opinion is it doesn't make any difference whether there's a usage agreement, or not. Personal consumption is a personal expense. I can't find anything in the company materials that suggest deducting personal usage, so I'm not sure how the suggestion to expense originated.

In addition, the taxpayer has purchased a program to become a "certified personal trainer". As best I can determine, there are no state licensing requirements to be a personal trainer but to practice as a "certified personal trainer" one of these courses must be successfully completed. My view is a Beachbody coach seems to be more of a nutritional trainer than personal trainer. It would appear this program to become a "certified personal trainer" would be training for a new profession and non deductible.

I'd appreciate some input from others first on the personal usage and also on the deductibility of the "certified personal trainer" expenses.

[Koss]

Personal Use

I agree that anything used personally is not deductible. You can direct your client's attention to line 36 on page two of Schedule C: "Purchases less cost of items withdrawn for personal use."

As for the education to become a personal trainer, I think it's a gray area. If there are no licensing requirements, then one could take the position that the taxpayer is already a personal trainer, and that the education is going to make him better, and more marketable. If he is not already holding himself out as a personal trainer, then that argument may not be valid. But the fact that the state has no licensing requirements weakens the claim that the education is preparing him for a new career.

BMK

[Zee]

Training for a new profession or not

Thanks for the response Koss - I agree it may be a gray area, but a coach with Beachbody is much more of a nutritional coach that personal trainer in the nature of their roles. I don't think any states license personal trainers at this time. If the TP was functioning more in the physical exercise area, I would agree. But, this is really an online situation. People follow a purchased video for their exercise portion and use the supplments. It isn't an interactive group or interactive personal exercise, etc.

[Snaggletooth]

98-pound weakling

I haven't seen the advertisement for the 98-pound weakling in years. Trying to figure out how this guy can get a deduction.

Musclebound, bronze, beachbummer kicks sand in the face of the 98-pound weakling and steals his girlfriend. With sand in his eyes, he starts going to the gym and eating protein food like a horse. Six months later the guy weighs a perfect 185 lbs and rock-ribbed with muscles and six-pack abs.

Goes back to the beach to win his girlfriend back, and beats the crap out of the beachbummer.

Any deduction for this guy?

Whaddaboutit, Rita? Black Bart? even FEDuke might know...I think he was once one of these guys...

[Koss]

Medical Expense?

Maybe the guy could get a psychologist to recommend a treatment plan of diet and exercise, in order to address the guy's low self-esteem, the depression caused by the loss of his girlfriend, and the anxiety and PTSD arising out of the bullying he experienced on the beach.

Yes, I am joking.

However, in some cases, some of the costs associated with formal diet and exercise programs may be deductible as a medical expense, if the program is part of a treatment plan prescribed by a doctor, to treat a disease or disorder.

Probably not applicable to people signing up for Beachbody.

But someone with a diagnosis of morbid obesity or diabetes, for example, can often take a medical expense deduction for payments made for the services of a nutritionist, dietitian or fitness trainer.

The question of whether nutritional products are deductible is a whole different matter...

BMK

[Gary]

Wow

I remember those ads. I must be old.

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I haven't seen the advertisement for the 98-pound weakling in years. Trying to figure out how this guy can get a deduction.

Musclebound, bronze, beachbummer kicks sand in the face of the 98-pound weakling and steals his girlfriend. With sand in his eyes, he starts going to the gym and eating protein food like a horse. Six months later the guy weighs a perfect 185 lbs and rock-ribbed with muscles and six-pack abs.

Goes back to the beach to win his girlfriend back, and beats the crap out of the beachbummer.

Any deduction for this guy?

Whaddaboutit, Rita? Black Bart? even FEDuke might know...I think he was once one of these guys...