First off I want you to know I am not a Tax Professional and in no way am I trying to give you tax advice or tell you how to do your taxes! Been there, got the hat for it and never want to do it again!! Be sure you speak to a tax professional who is knowledgeable about the current tax laws and business deductions.
Below are some general tax advantages you might want to look into if your are working your membership with Young Living as a business:
- Mileage Deduction – Be sure to keep up with your mileage from your home and back when (and what the trip was for):
- Meeting with a friend or a prospect to discuss Young Living
- Holding a class at a location other than your own home
- Driving to a conference
- Dropping off samples to someone
- Meals – If you are having a business lunch with someone, that meal can also be a deduction IF you are really discussing Young Living products and/or the Young Living opportunities with the person you are having the meal with.
- Supplies – For your Young Living business, be sure to keep receipts for :
- Business cards
- Cost of a website for your Young Living business
- Promotional materials
- Office supplies
- Office equipment
- Phone/Internet – This is something that may be deductible or at least partially deductible based on your personal situation. If you have a cell phone and you use it to work your business (send emails, communicate online, or make phone calls), then that is a business related deduction. Talk to a tax professional about how to determine the correct percentage that can be deducted if you also use it for personal use. The same applies to your internet bill.
- Office Space – This is a home business, so many of you will have a home office space dedicated to your Young Living business. The actual physical space in your home can be a tax deduction as long as it is a dedicated space for business use only (i.e. the room is not doubling as a guest bedroom). Tax rules on this one vary by location, so be sure to check your local laws for how this deduction works.
There is also a phone app called Taxbot that can help you keep track of your deductions.
Here’s what being an Independent Distributor of Young Living has to offer you: