MARY KAY WORKSHEET TO PREPARE “SCHEDULE C”



MARY KAY WORKSHEET TO PREPARE “SCHEDULE C”For Tax Year __________________(PART I)INCOME SECTION(Revised JANUARY 2008)1. ___________________Sales (Net total of all pink tickets. Make sure you include sales to other consultants.)2. ___________________Returns (Money refunded to customers, don’t include sales tax)6. ___________________Other income: MK may send you an Income Advisory StatementRecruiting commissions & bonuses …___________________Prizes & awards ……………………….___________________ “Dovetail” income received …………....___________________ (PART II) EXPENSE SECTION 8. __________________Advertising (MK Personal website, PCP enrollment fees, business cards)9. __________________Car Expenses/Mileage ______________ number of business miles logged x 48.5? (2007 rate)January 1 Odometer reading ______________December 31 Odometer reading____________10. _________________Commissions & Fees (Dovetail expenses)13. _________________Depreciation: Office equipment, cars, office in home. Seek tax guidance on this.15. _________________Insurance (Product Replacement Insurance)16b. _________________Interest (loans or business credit cards)17. _________________Legal & Professional services (accountant’s preparation fee for last year)18. _________________Office ExpensesInclude the following:_______________Freight & phone order charges (find this on order printouts)_______________Postage (stamps, packages mailed – explanation should be included on receipts)_______________Bank charges from business account(s)_______________ Cost of business checks_______________Credit card processing fees_______________Printing/copying charges_______________Business cards, labels, checks, etc. (unless recorded in Advertising)_______________Tapes/CD’s from workshops, Seminar, etc._______________Cost of recruit prospect or team member’s meal (if you pay hers, but not yours) _______________Any other expenses pertaining to running your office, purchased at Seminar Sales Booth, Vendor’s market, or any store._______________ Computer Tech help20b. _________________Rent (meeting rooms, fair booths)22. _________________Supplies: New Consultant Starter Kit, Section 2 sales aids (include sales tax), any expenses related toselling appointments. Ex: cotton balls, wash cloths, open house refreshments, etc.23. _________________Taxes (non-recovered sales tax – amount you paid on product that was not sold. This would includepersonal use products, hostess gifts or prizes, product donated to charity or thrown away.)24a. ________________ Travel (hotel, airfare, taxi, parking, tolls, tips, etc.)24b. ________________ Meals & entertainment (while traveling). # of days ________ X $52 per day(IRS allows $52 per day, no need to keep receipts. Career Conference = 1? days, Seminar = 3? days) You will only be allowed to deduct 50% of this amount and only if away overnight or late into the night.24c/24d. _____________24b X 50%25. _________________Utilities (phone) All long distance business calls. You cannot deduct the base rate of your home line,but you can deduct cost of a separate business line, call waiting, caller ID & your cellular phone.27. _________________Other Expenses: List in Part V_______________Internet & virus protection _______________ Seminars & workshops (registration for Seminar, Career Conference, Retreat,all workshops, banquets, fashion shows, meeting fees & guest nights._______________Uniform (Director Suit & Red jacket only)_______________Prizes & gifts: to team members, director, customer’s new baby or wedding, etc._______________Bad Debts (Any sale included above that payment was never received) (PART III) COST OF GOODS SOLD - 33. Method used to value closing inventory is COST35. __________________Beginning inventory at COST (same as last year’s ending inventory.)New consultants who started during this year, yours is ZERO.36. __________________Purchases at COST (Section 1 plus any you purchased from other consultants)36. __________________COST of product withdrawn for personal use (include gifts to family and friends)37. __________________Cost of labor (office help, % of maid service)41. __________________Ending inventory at COST (Try to settle everything by the end of the year)Add up all products on your shelf ……………….._________________Add in products you need to return to MK ………_________________Add in products other consultants owe you ……._________________Add in products currently backordered …………._________________Subtract products you owe others ………………._________________BUSINESS USE OF YOUR HOME (Form 8829)NOTE: If you do not store an inventory, you may not be allowed to take this deduction._______________Square footage of your entire home_______________Square footage of your business use areas: office, inventory storage area(If other rooms are also used, list separately the square footage of each, how used & how often)_______________Value of home (adjusted basis or fair market value)_______________Value of land included above_______________Mortgage Interest (or Rent payments)_______________Real Estate Taxes_______________Homeowner’s or Renter’s Insurance_______________Repairs & Maintenance (also include improvements made to your home this year)_______________Cost of repairs/improvements to the business area are “Direct Expenses” _______________Cost of repairs/improvements for general upkeep of the whole house are “Indirect Expenses”_______________Cost of utilities for the year:gas & electric, water, sewer, trash pickup, etc.OTHER COMMENTS & FAQ’S: ACCOUNTING METHOD (Line F) is CASH.DRY CLEANING EXPENSES for Director suit & Red Jackets are NOT deductible.FOOD costs at or on your way to “business appointments” with other MK people are NOT deductible. CHILD CARE CREDITS are based on net dollars earned. They can only be used as a credit against taxes, not as labor costs.HOSTESS CREDITS are NOT deductible separately because you have already received the deduction by claiming the cost you paid in your inventory. You lose the money you would have received had you sold it at a profit, but you cannot claim a tax loss on what you COULD have earned, only on what expenses you’ve actually paid. RETAIL PRODUCT USED AS DEMOS are NOT deductible separately for the same reason stated above for hostess credits.Even though these are not deductible line items, it is a good idea to keep records of them for the following reasons: (1) It helps to understand where your inventory is going (2) In the case of an audit, these records would prove business activity rather than a predominately personal use of inventory.(3) Non-recovered sales tax on these products ................
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