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« on: October 07, 2006, 03:54:44 PM » |
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Does anyone know how receiving money back from the company will affect our taxes? I don't know enuff about taxes to have a clue...  |
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Pink Lighthouse Lounge
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« on: October 07, 2006, 03:54:44 PM » |
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FreefromMK
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« Reply #1 on: October 07, 2006, 04:51:34 PM » |
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Ooo Ooo Ooo!!! PLEASE someone who has experience in this fill us in!!! Y'all know my situation  and how much inventory I sold back! I'm just hoping I don't have to pay a boatload of taxes this year... |
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Carol
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« Reply #2 on: October 08, 2006, 04:15:06 PM » |
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Does anyone know how receiving money back from the company will affect our taxes? I don't know enuff about taxes to have a clue... Excellent question. I'm anxious to hear the answer also. But, since you're not getting back 100% of what you paid you're still taking a loss right? Can't wait to hear from someone who knows. |
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pinkbegone
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« Reply #3 on: October 08, 2006, 08:07:29 PM » |
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Please I hope someone knows!!! I would love to know also!!! HELP!
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pinkedout
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« Reply #4 on: October 09, 2006, 06:53:48 AM » |
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My hubby is a tax accountant. There are no tax implications. Since you are not getting 100% back - you can write that off as a loss.
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PPA
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« Reply #5 on: October 09, 2006, 06:14:39 PM » |
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TGIF~Thank God I'm Free
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« Reply #6 on: October 09, 2006, 07:47:44 PM » |
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But should you even report that you received money back? I mean, what if you have already taken a loss for the past year, and the money is from part of that past year. Wouldn't you be taking a loss twice? Does that make sense?    spider |
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yougogirl
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« Reply #7 on: October 10, 2006, 05:17:55 PM » |
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It was suggested to me to treat it as a sale to a customer and the numbers seemed to work out for me. I had a hard time wrapping my brain around it in the beginning, but after I thought about it, it made perfect sense to just fill out a sales slip, because I was "selling it back to MK". So you treat it as a sale.
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FreefromMK
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« Reply #8 on: October 10, 2006, 05:43:05 PM » |
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Hey yougogirl- I still don't get it. So if we report it as income, how does that work out in our favor??? I'm sorry to be such a dunce. Give me a cello and I'm golden. Give me a calculator and I'm spider
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yougogirl
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« Reply #9 on: October 11, 2006, 10:50:22 AM » |
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FreefromMK: I guess you just have to think about it as it's a sale, which you are doing. You're selling it to a customer (MK) and they are paying you 90pct of what you paid originally plus tax, so you just fill out a sales slip after you receive your refund check. Then when you add up all of you sales, vs. expenses etc, it all works out. Trust me, I had a hell of a time getting the numbers to work until someone told me to do it that way and after I thought about it, it made ALL the sense in the world that yes, I was selling MKC the product. Right? It all worked out for me and it was basically a wash. I did end up owing IRS a very small amount for what I "earned" -lolol- because I didn't bother trying to take any mileage deductions or any other expenses except for section II stuff. I was glad to be done with it and it was close enough for me and not crazy enough to even draw any red flags. I didn't dare try to do too many expenses. I felt like it was my monetary lesson (slap on the wrists) for having been so stupid to get in this MLM to begin with :-)
HTH
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FreefromMK
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« Reply #10 on: October 11, 2006, 03:10:07 PM » |
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Thank you so much!!!  I'll let ya know how it goes in a few months... |
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yougogirl
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« Reply #11 on: October 11, 2006, 11:35:00 PM » |
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Good luck :-) It certainly was very logical and a DUH moment for me :-) I had to think real hard about that one, ended up emailing a couple of other gals who had returned their products to see how they did it.......I don't always think as logically as I should. Maybe I was still in that pink haze ;-)
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SSW
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« Reply #12 on: October 20, 2006, 09:04:57 PM » |
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I can't see why you would owe the IRS anything! You made NO profit! It is all a loss if you sold at 90% back to MKC. Everything would be a loss, and if you include the section 2 stuff, which you can not return, but IS a tax deduction, then you should be at a loss no matter what!
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"Some people care 'bout what other people think, worry 'bout what they say. Let a little gossip coming from a loose lip ruin a perfect day. Sayin' 'bla bla bla' just jackin' their jaws, gotta let it roll off-a my back. I don't give a damn what other people think, what do ya think about that?" M. G.
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yougogirl
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« Reply #13 on: October 21, 2006, 11:41:48 AM » |
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i agree - but where is tracy when we need her on this one......yoo hooooooooooo Tracy :-)
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