December 30, 2008

Who has experience with network marketing and taxes?

Filed under United States by Karen

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December 31, 2008

jen @ 11:59 pm

You will need to fill out a schedule c. That is where you report the cost of goods sold, the income you made and how much product you have left. I would claim the income on my 1099 and anymore that you might have from this business. All a 1099 is what they(the co.) has pd you. They do not know what you spent or made elsewhere. You can look up instructions for a schedule c on IRS.gov. Type schedule c in the key words box.

January 3, 2009

massively_successful @ 3:58 am

The 1099 is income. You need to figure out how much you started with in inventory, your purchases and how much you ended with in inventory. The difference is what you sold, or cost of goods sold.

1099 income goes on line 1 of sch C
Cost goods sold on line 4
Gross profit on line 5.

Then you deduct EVERYTHING you can think of. Computer, internet, phone bill, meetings etc etc

You will probably end up at a loss which you can deduct from your job income.

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