Tax Time Question- Consultant as Host & Consultant Gifts?

[junkfortara]

Hi Gang,
I am looking for some help. I know likely no one is an expert.. I won't hold anyone accountable. Just need some guidance.

I printed my Income and Expense report out of P3 and I have one entire show that is not showing up under my consultant gifts. I noticed because it was a BIG one.

I offered a Black Friday deal basically giving away all of my commission (and then some). I marked the discounts as consultant gifts, but it's not showing on my report for the year??? I used myself as the host, is there some tax rule about not claiming consultant gifts against a show I hosted myself??

Thanks for any help you can share!
Tara

 

[esavvymom]

I don't know if there is a rule since you were the host, but I do know that you can only give I think a max of $35 per year per person. That being said, did you confirm that you had in fact entered them as "Consultant Gift" payments, did you verify your report parameters (dates, checked off the right category). That's all I can think of at the moment.

 

[junkfortara]

oh boy- well I'm way over that max. Oops. Still not sure what's up- I did check dates and it did print shows before and after. Thanks for the suggestions and info.
Well-- I'm showing I made a whopping $90 on the year.

Now if we subtract all the goodies I bought for myself... that's a different story. ;-)

 

[esavvymom]

oh boy- well I'm way over that max. Oops. Still not sure what's up- I did check dates and it did print shows before and after. Thanks for the suggestions and info.
Well-- I'm showing I made a whopping $90 on the year. Now if we subtract all the goodies I bought for myself... that's a different story. ;-)

I just checked the IRS website, it's actually $25. Sorry. From the 2010 publication:
Publication 17 (2010), Your Federal Income Tax

$25 limit. You can deduct no more than $25 for business gifts you give directly or indirectly to each person during your tax year. A gift to a company that is intended for the eventual personal use or benefit of a particular person or a limited class of people will be considered an indirect gift to that particular person or to the individuals within that class of people who receive the gift. If you give a gift to a member of a customer's family, the gift is generally considered to be an indirect gift to the customer. This rule does not apply if you have a bona fide, independent business connection with that family member and the gift is not intended for the customer's eventual use. If you and your spouse both give gifts, both of you are treated as one taxpayer. It does not matter whether you have separate businesses, are separately employed, or whether each of you has an independent connection with the recipient. If a partnership gives gifts, the partnership and the partners are treated as one taxpayer.

That publication is actually a very good one for small business tax deductions- worth a look to make sure you are entering the right numbers and counting it correctly.

 

[AnaCash]

Hi Tara,I'm sorry to hear that you're having trouble with your Income and Expense report. As a fellow Pampered Chef consultant, I completely understand the importance of accurately tracking our business expenses. From my experience, there could be a few reasons why the show in question is not showing up under your consultant gifts.First, double check that you have correctly marked the discounts as consultant gifts in your P3 system. Sometimes, if the discount is not marked as a consultant gift, it will not show up on the report. Additionally, if you used your own host benefits to cover the discounts, it may not show up as a consultant gift on the report.As for the tax rule question, I recommend consulting with a tax professional or reaching out to Pampered Chef's customer service for clarification. They will be able to provide you with the most accurate information regarding tax rules and claiming consultant gifts on a show you hosted yourself.I hope this helps! Let me know if you have any further questions or concerns. Best of luck with your business!Sincerely,