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Shadow Walker | If I bought Avon or Mary Kay as a rep for myself only? |
If I was a rep and only bought these products for myself with no intent to sell to customers, would I still have to report to the IRS? It's technically not income if I'm not selling it, especially at the marked up price.
I know I can report losses for three years, but that's not what I'm talking about.
Additional Details
I'm a rep because I want the items at the discount. Buying it online from someone else wouldn't give me a discount, so that's why I chose to be a rep. |
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Elevating Your Business
|
Just a thought --
If you are an AVON rep, then it's costing you at least a pack of brochures every two weeks + a $2.50 fee + tax. So that's nearly $10
I'm sure that will eat into your 20% discount for orders of $300 or less so much so that you won't really end up with a discount of any amount?
You might be better off buying it from someone else.
As for taxes. I live in WA and if someone was in your situation you're writing about, they would not need to pay Business & Occupation tax or have a licnese. And there wouldn't be any federal or town taxes either.
However, I would check with your:
city/state/ and then call the IRS to make sure at 800-829-1040
Finally, besides having customers, I buy items for my own personal use, too. I charge myself what I pay for them + tax. So there is NO income ever on any of my own orders.
And if you're only buying them for yourself, AVON charges you sales tax already. |
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Bradygirl
|
I think with Mary Kay you have to pay a start up fee, But you can purchase items at 1/2 price since there is a 50% mark up. |
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bubulubu
|
no |
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Misty
|
I don't think you would have to report is as income because you wouldn't actually be making income. However I don't think you can do that with Avon. You have to have a certain amount of sales to stay as rep. I have heard of lots of people doing this through Mary Kay though. |
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SandraD
 |
Yes and as far as MK goes the starter kit is a tax deduction in my state. I would recomend you talk to a tax advisers or go to legal ease on the Mary Kay in touch website |
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hbds
|
My mom's done this for years - she's never bothered reporting to the IRS and my parents have even gone through an audit for totally different reasons and it was brought up to their accountant, so I would assume it's not a big deal. |
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Kikki
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You can buy their products online you don't have to go to the whole process |
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joyneds
|
uhhm there is no minimum to stay as a rep. with avon just order once every 4 campaigns to stay as an active rep. thats it. not hard really. thats really once every 2- 3 months.
As for the IRS because it is a cost not a profit it does not count as earnings. |
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MBCBnBB
 |
no not at all... they dont know if your going to sell it or not, you are supposed to sign up with them and they give you a form for taxes anyways... your fine! |
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gobonzzo
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You would only have an expense, not an income. there is no expense tax, Only an income tax. Of course, if you have a business and go 5 years without making any money you might be liable for an audit.
I would just ignore the whole thing. You are not really a business, just a consumer. |
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mardix27
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No, you won't have to report it to the IRS. You're not getting any income from buying for yourself. Now, if you decide to actually sell to someone else, then technically, you would have to report the income. Now, how many Avon & Mary Kay reps ACTUALLY report the income that they get from sales, is another question....I'm guessing that the number would be VERY low. You should be fine. |
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