Started Mary Kay in late October of this year

Forum|Forum|1 year ago
November 13, 2024
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I started a Mary Kay Direct Selling business on October 29 2024.

I have about 2500 in expenses, including inventory that has not yet been sold. I would prefer to claim all as regular expenses and be done with it. Can I do this for the inventory portion of the expenses?

If I have any income from it - should I list it even if it is less than that? $600?

Ask the Experts - Biz Tax Moves - Nov 2024

KarenL4

Hi, Lori_E,

There is a small business exception to report inventory. You can expense your purchases as long as you sold the goods in the tax year. If you did not sell the goods, you cannot expense that portion of the cost of goods sold. If you search inventories within this IRS publication you can learn more about the requirements, including that your book and tax methods match if you are not reporting inventory.

Yes, you need to report all worldwide income, whether or not you receive a tax form (e.g., a 1099-K). TurboTax helps you enter both that information for which you received a tax form and other receipts, so it is easy to manage.

Hope this helps.

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Regards,

Karen

TurboTax Expert

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