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In the 80s I successfully defended at audit a write-off of a couple thousand dollars of air travel and accommodation against an income of $100. It was a six month surf trip and I wrote one article which was purchased by Surfer magazine for $100. The auditor said this isn't a business. You lost way more money than you took in. My response was "I planned to sell more articles but it didn't happen. If it were a hamburger stand losing money would your argument be any more valid?" He said good point and closed the audit.
In that sense, anybody could write off a family vacation to Hawaii, telling the IRS you wanted to check out the weather in case you ever get transferred there. Or you could buy a freezer full of steak and tell the IRS you wanted to sample them in case you ever have an MLM seminar in your backyard. Or you could buy a Corvette and tell the IRS you use it to fake success in order to help with recruiting efforts. I suspect you are telling only half the story here because the IRS has been to more than a few MLM rodeos.
In that sense, anybody could write off a family vacation to Hawaii, telling the IRS you wanted to check out the weather in case you ever get transferred there. Or you could buy a freezer full of steak and tell the IRS you wanted to sample them in case you ever have an MLM seminar in your backyard. Or you could buy a Corvette and tell the IRS you use it to fake success in order to help with recruiting efforts. I suspect you are telling only half the story here because the IRS has been to more than a few MLM rodeos.
You suspect wrongly and your examples are entirely different. I am truthfully sharing my first hand experience of which MLM was not a part. If you bought a freezer full of steaks and tried to sell them but were not able to I imagine that would be a legit loss in the IRS's eyes.
There is a lot of pressure on women to "support" each other in their "businesses". A lot of it boils down to peer pressure. Something I outgrew in junior high school. Which is probably why I've never gotten involved in MLM.
i understand everyone just wants to help each other out. im tempted to put down their products individually because they are low quality and overpriced but i avoid it because i dont want to be the bad guy taking away money from a desperate housewife.
i understand everyone just wants to help each other out. im tempted to put down their products individually because they are low quality and overpriced but i avoid it because i dont want to be the bad guy taking away money from a desperate housewife.
From what I've seen, buying a product from them doesn't really help them. Any real money is made by recruiting other people into their downline. Many of the sales parties weren't really selling anything at all, they just spent the entire evening pitching the business. If you even asked about purchasing the product, they wouldn't be interested or would act like it was a waste of their time. They don't make much selling products only.
I have a "friend" who moved to England, and she's still hitting me up for her MLM scheme. It's a scourge.
I remember going to a couple of Tupperware parties with my mother when I was a kid, and it did seem fun. The ones now are not the same. You buy, buy, buy or you're an outcast.
I would bet they are leased, not owned by the drivers.
it’s a two-year "Co-op lease" paid for by Mary Kay, and when the two years is up, the consultant can elect to sell the car back to the dealership or purchase it herself.
When I was a young mother, any excuse to get out of the house was welcomed. My neighbors and I went to these parties every month or so, for the social outlet and the inevitable dill dip. Everyone understood that if you didn’t buy anything it was fine.
The hostess got free stuff for booking the party, but the guests weren’t obligated to buy. I still think fondly of how we laughed at some of the off the wall Tupperware items. Who wouldn’t want an individual carrot container?
I had to laugh reading this. I remember, back in the day, being a stay at home mom with small children in a neighborhood of stay at home moms---a friend phoned me "Rachel's having a Tupperware party!"
Any excuse to get out of the house for a while.
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