Monat direct seller of shampoo

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  • Gran
    Junior Member
    • Jan 2018
    • 6

    #1

    Monat direct seller of shampoo

    Client says Monat Company (seller of hair restoration and correction products) tells agents to deduct cost of personal use shampoo as advertising. What happened to 'ordinary and necessary' business expenses?
    Any thoughts on how to respond/explain to client? Unable to find court case re direct sellers expenses to use as an example.
  • spanel
    Senior Member
    • Oct 2008
    • 845

    #2
    Originally posted by Gran
    Client says Monat Company (seller of hair restoration and correction products) tells agents to deduct cost of personal use shampoo as advertising. What happened to 'ordinary and necessary' business expenses?
    Any thoughts on how to respond/explain to client? Unable to find court case re direct sellers expenses to use as an example.
    Its clearly non deductible personal use. Because we all know that tax advise from non tax preparers is always actuate.

    Chris

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    • New York Enrolled Agent
      Senior Member
      • Nov 2006
      • 1531

      #3
      Originally posted by Gran
      Client says Monat Company (seller of hair restoration and correction products) tells agents to deduct cost of personal use shampoo as advertising. What happened to 'ordinary and necessary' business expenses?
      Any thoughts on how to respond/explain to client? Unable to find court case re direct sellers expenses to use as an example.
      I think all you need to do is look at IRC ยง262

      Comment

      • Uncle Sam
        Senior Member
        • Jul 2006
        • 1462

        #4
        Yes - like the current TV commercial of the dog walker by one of the franchise shops looking for new business.
        Uncle Sam, CPA, EA. ARA, NTPI Fellow

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