Thursday, September 24, 2009

Networkers and the IRS - Home Office Deductions

By Jane E. Quade

Welcome Network Marketers, MLM associates and home-based business owners. Take a few minutes to read through this valuable material and learn yet another benefit of being a Network Marketer.

For all you savvy Network Marketers, MLM'ers and home based business owners, you will want to continue through this short article to learn about more deductions that you are entitled to take.

Remember, when you are a business owner, and all Network Marketers are business owners, when you begin pulling in the good money you want to hold onto as much of it as possible.

And that is where the IRS home business tax deductions come in. These deductions are out there for the taking so lets take advantage of them.

Home Office Deductions are an enormous benefit of working out of your home. The biggest obstacle with this particular deduction is being prepared to show how you use your home for your business, should you ever have the lovely experience of being audited.

Lets assume that you, the network marketer, do qualify for this type of deduction. You can deduct a portion of expenses related to your entire home.

Here are several examples of such deductions:

  • mortgage payments
  • mortgage insurance
  • mortgage interest
  • real estate taxes
  • utility bills
  • home repairs
  • painting

And here are some other guidelines to adhere to:

The particular portion or "space" that you are using in your home for

  1. your MLM business must be used regularly and exclusively for business.
  2. as a MLM owner, you must use the "space" for administrative or management activities of your Network Marketing Business.
  3. you cannot have another fixed location for your business where you conduct substantial administrative or management activities.

Generally, the amount you can deduct depends on the percentage of your home that you used for business. Your deduction will be limited if your gross income from your business is less than your total business expenses.

The following is a great example of when you cannot use space in your home as a business deduction:

An attorney uses the den in his home to write legal briefs or prepare clients' tax returns. The family also uses the den for recreation. The den is not used exclusively in the attorney's profession, so a business deduction cannot be claimed for its use.

Network Marketers need to use Form 8829 to figure your home office deduction and report those deductions on line 30 of Schedule C, Form 1040.

For more information see IRS Publication 587, Business Use of Your Home.

I, Jane Ellen, accept full responsibility for the content of this article. If you have any questions regarding anything in this article, feel free to contact me via my website or phone. 440.942.8166

Jane Ellen has an extensive background in the home-based business industry as well as public marketing. She is most well known for her no-nonsense approach to marketing and teaching style. She knows that the only thing she cannot create more of is time - so she won't waste yours.

Looking For a New MLM Company? What You Need to Know About a New MLM Company Before You Join

By Stacy McIntosh

Joining a new MLM company definitely has its advantages but there are a few things you need to consider before you take the plunge.

If you go to sites like or you are bound to find a new MLM company. Both have a directory for your observation but what they won't tell you is what to look for when researching a new MLM company.

Here are some things to consider when researching a new MLM company.

First what is the product? Sounds like a no brainer, right? But it's something that many people over look. The illusion of grandeur of being apart of a new MLM company often impedes their rational thought as they forget to truly look at what the product is and what it has to offer. I see this often with high ticket items especially in the world of online marketing. People think that they can make their millions fast as they are the first to bring it to market but fail to realize that the product does not hold any real value to the public. So make sure that YOU would purchase the product outside of the so called "opportunity" because if you wouldn't chances are others wont either.

The second thing to consider with a new MLM company is who are the leaders of this organization? Do your research. Google the names and find out if these are people with a proven track record or have they jumped from one company to the next leaving a wake of destruction in their path. You'll often see this among marketers that have burned people and their reputation is catching up to them. Google is a fantastic tool. Just remember to read BOTH sides of the story.

Third and probably most important when looking at a new MLM company is what is the market place demanding right now? The most lucrative time to be a part of company is no doubt in the first 2 years but only if that new MLM company is showing momentum and speed in its launch. Otherwise it may take you years to see any significant results as the growth is just too slow. Be aware of the market place and the timing and trends of the general public. Where are dollars being spent right now? If it is obvious that the product of this new MLM company is ahead of that trend; than you have the potential for a goldmine.

Lastly, really study the marketing plan of a new MLM company. There is no doubt that the Internet is a driving force in the network marketing industry so make sure that this new MLM company allows you to utilize such a brilliant tool. Team up with others in this new MLM company who have mastered online marketing so you can not only utilize your offline marketing skills but you can build a sustainable life long business with the help of the almighty Internet.

Stacy is a an established Internet marketer who shows other network marketers in her organization how to use cutting edge technology and elegant marketing techniques to build a sustainable long term business. To see examples of Stacy's branding techniques visit or