Purchases Made Under a Customer's Name - Taxes

[jenniferknapp]

Personal purchases made under a customer's name - taxesAlso, how do you plan "prove" it without having a receipt or proof of payment? (since you pay the whole show with your debit card) TIA!

 

[heat123]

Do you mean as a client gift? We have that capability to enter it in PP as a Consultant gift up to $25. So if that is the case then yes I claim them in taxes.

 

[jenniferknapp]

I mean personal product purchases of larger amounts that we add to a show... ex: under my mom's name

 

[BethCooks4U]

You can't claim things purchased under someone elses name as a business expense. How would you explain that if audited? "I cheated so I could get the sales up but it was really bought to use at my shows".

I suppose you could claim something that you purchased as a door prize or host gift and purchased it in their name. I would then keep good records.

 

[lisacb77]

I think the only way is if the order is in someone else's name but you marked the payment as "consultant gift"...

 

[jenniferknapp]

so I guess the question is, does anyone do $25 (the max consultant gift) for almost every show??

 

[fruit76loop]

I use 2 different codes...I have a consultant gift and consultant incentive. I have added the second code in and I have to manually change it from gift to incentive when I use incentives.

For a gift of course, the max is $25 but there is no limit on incentives. A gift is something you give the host as a thank you or to a customer (door prize, free shipping etc). But an incentive is something you give to better your business...such as when you get $250 in orders before your show I will give you a _______ or when you have a $1000 show I will give you a ______. The most important part of this is to keep good records of what the incentive was for in the note line of the expense report. I have had 15 $1000 shows this year and they all have a consultant incentive of at least $50 or more.

HTH

 

[jenniferknapp]

yes it does!! thanks

 

[chefdeb]

No, that is not right.