Mary Kay

[DaveO]

Thanks Luis

I needed a laugh today. I see you have a few Mary Kay clients as well.

[oceanlovin'ea]

Show business motive

by having client make a business plan. If she has a written business plan, has a website promoting her business, business cards, has shows regularly, that would show she was trying to make a real business.

Many of the people that are in sales like Mary Kay, Home Interiors, Princess parties, the candle parties are many times mothers who have children at home and they are trying to add to the household income and have a job that they can do when it is more convenient for husband or grandparents to watch the kids.

So you can really say they are just playing around or it is just a hobby. Many times they are doing the best.

You can help them to see how they can make their business more successful and they will be a client for life.

Linda F

[BOB W]

I Just got done....

.......with my Mary Kay person.... She had $24,000 in Other Income, Sales were 7,000. I guess she is getting up there???????? $12,000 net profit........

[skhyatt]

Doesn't sound right

From the tax tip sheet provided to my client by Mary Kay:

"Use a consultant order form to record the products you will use for your personal use. Add them up at the end of the year as above, and also figure non-collected sales tax on the retail amount that you can use as a tax deduction."

I figured anything used for personal use was not deductible and deducted from total purchases? In fact, I think I read that in an older version of Pub. 911 I found online.

[BOB W]

Had the ..........

........... same question with my MK client. Went around and around but then realized that her product sales/cost of goods info was based on a 50% gross profit (no sales tax). And, Sales Tax not collected had to come out of her Gross Profit. I made adjustments for personal use and took the remaining (not collected) ST paid as an expense.