Tracking Tax Deductions for SS Bonus & Prize Incentives

[quiverfull7]

Okay... I am hoping someone can help me know how to keep track and document this issue for taxes. Here's my example: I received a 8" EC pan as a SS bonus. I already own one so I have used that one as an incentive prize for my Mystery Host show. Someone said that I could deduct that as an expense... since the SS bonus is going to show as income... but how do I do that and document ... and of course this extends to any prize etc.

 

[crystalscookingnow]

Show the retail value of the saute pan as an expense associated with the show. You can do this in PP. This is the way that I keep track of any consultant gifts. You can enter the SS Bonus in the income portion of PP, too. That way you can print one report for your taxes. The PP income would then match the 1099 from PC.

 

[Sandibeach]

The problem you'll encounter if you ever get audited, is they'll want to see the receipt for the amount you actually paid. If you still have your original receipt from when you bought the item, it might pass otherwise I think you maybe out of luck claiming it.

 

[quiverfull7]

I guess that would be the super starter bonus statement ... hmmmm I don't think I kept the packing slip... good food for thought. I wonder if anyone has more info on this topic?

 

[PChefAbey]

Any product that you earn for free can be claimed as an expesne if you use it somewhow in your product. Just becuase you didn't pay for it doesn't mean you can't claim it. Pampered Chef is adding the dollar value of that product to our income, so yes you can deduct it. It would just be anohter expense for $38.

 

[crystalscookingnow]

When the Pampered Chef sends the 1099 at the end of the year, any bonuses earned will be shown. This will be your 'proof'/receipt that you did in fact earn it and are paying taxes on it. Since it's on your 1099, you'll pay taxes on it. Just the same as any bonus that you receive. I believe that includes trips, TPC rings, etc.

 

[quiverfull7]

Thank You Everyone!!!!!!

 

[AJPratt]

Any product that you earn for free can be claimed as an expesne if you use it somewhow in your product. Just becuase you didn't pay for it doesn't mean you can't claim it. Pampered Chef is adding the dollar value of that product to our income, so yes you can deduct it. It would just be anohter expense for $38.

This is what I normall do, too!