Income Tax Preparation for your Mary Kay Business
Income Tax Preparation for your Mary Kay Business
INCOME
1. All retail sales income from beauty appointments and reorders $_____________
2. All other income. (4-13% checks, other prizes and commissions from 1099 form
or income Advisory statements) $_____________
INVENTORY
1. Take inventory of all section1 wholesale merchandise on your shelf as of Dec 31
(Use a Consultant Order Sheet to record totals) $_____________
2. Ending inventory from previous year $_____________
EXPENSES
1. Starter Kit cost if you are a new consultant $_____________
* Section 1 wholesale purchases for the year (computer sheets from company) $_____________
* Section 2 business supplies (on computer sheets from company) $_____________
* Sales tax paid to the company on product purchases (on computer sheets) $_____________
* Freight charges on product orders $_____________
* Non-collected sales tax on gifts, discounts and personal use items $_____________
* Products used for personal use at cost $_____________
* Office Expenses $_____________
* Business supplies (includes magazines & publications) $_____________
* Discounts & hostess credits at retail value $_____________
* Items used as gifts at cost $_____________
* Product refunds at retail value $_____________
* Bad debts (money not collected on product sold) $_____________
* Promotions and contest expenses $_____________
* Laundry for dry cleaning of business attire $_____________
* Bank service charges (money orders, cashiers checks, Visa/MasterCard/Discover
fees, checking charges) $_____________
* Interest paid on business loans or MasterCard/Visa/Discover for inventory
and expenses $_____________
* Advertising & preferred Customer Enrollment & Premium Fees $_____________
* Postage & Express Mail $_____________
* Labor $_____________
* Meeting expenses, workshops, conferences and seminars $_____________
* Cost of Director suit or Red Jacket $_____________
* Obsolete products (discarded) at cost $_____________
* Accountant Fees $_____________
*Auto Expenses
Total business miles driven _____________
Gasoline expense or use Tax formula for mileage $_____________
*Travel Expenses
Plane, public transit, taxi $_____________
Toll road expenses $_____________
Lodging $_____________
* Entertainment & Meals (interviews, luncheon meetings, open house,
refreshments that you provided for any meeting, and meals while traveling) $_____________
* Charity donations $_____________
* Legal expenses $_____________
* Office rent or depreciation $_____________
* Telephone (include voice mail, Voice-Tel, cellular, etc.) $_____________
*Home Office Expense
Know sq. footage of office/home
Housekeeper, Repairs, Lawn care, etc. $_____________
Utilities $_____________
*Insurance
Product replacement Insurance $_____________
Medical $_____________
Income Tax Deductions Made Easy
Your income tax records can be completed in just a few minutes at the end of the year using these ideas and the Income Tax Preparation Sheet.
1. Use a consultant order sheet to take Inventory of your product Inventory (Section 1) as of December 31.
2. Use a consultant order form to record the products you will use for your personal use. (Figure non-collected sales tax on the retail amount that you can uses as a tax deduction)
3. Purchase 12 large manila envelopes and label one for each month of the year. (May use an Accordion File if filing by topic) Place all your income and expense records for each month of the year, such as statements and receipts, weekly accomplishments, sales tickets and computer printouts you receive with your orders in the envelope for that month. Also include cancelled checks or bank statements for that month from your Mary Kay back account, and your business charge card statement to document your charged expenses.
4. During the year write up all products used as gift items on sales tickets. (Keep track of non-collected sales tax)
5. Keep the computer sheets you receive with your product orders.
6. Keep a mileage chart including the odometer readings to and from your home. For Example: Go to work, grocery store, then deliver Mary Kay product, it is all tax deductible.
NOTE: This handout is in no way intended to be legal or professional advice on filling taxes. If you need legal or professional advice please consult your tax attorney, the IRS, or your CPA. These are suggestions only to help you prepare information for your tax attorney or CPA.
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