2008

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					                                 Mary Kay Independent Beauty Consultant
                                       Income tax summary for 2008

Mark J. Milslagle, CPA/ABV
705 Brookstone Court
Lexington, Kentucky 40515
(859) 806-5607
mjmcpa@insightbb.com


Income:

Sales                        $              Total of all sales tickets, including sales tax
Commissions                                 From 1099-MISC
Prizes and awards                           From 1099-MISC
Value of car                                From 1099-MISC
Total income                 $

Cost of product sold:

Section 1 purchases          $              Total from packing slips
Personal use                                Product used personally or given away (not a deduction)
Beginning inventory                         Total inventory on hand, at your cost, on January 1 (on last year's tax return)
Ending inventory                            Total inventory on hand, at your cost, on December 31

Expenses:

Advertising                                 Section 2 purchases, preferred customer plan, business cards, posters,
                                                booths, name lists, print ads (newspaper, phone listing, school boosters)
Bad debts                                   Only a deduction if already included in income
Commissions and prizes                      Amounts paid or prizes given to other consultants, team members
Insurance                                   Product replacement, business liability (not health insurance)
Interest expense                            Credit card, business loan
Professional services                       CPA, lawyer, bookkeeping
Office expenses                             Paper, pens, day planner, stamps, Fed-Ex, stationary, printer cartridges,
                                                toner, file folders, software
Pension plan                                Simplified Employee Pension (SEP), SIMPLE IRA
Rent or lease                               Meeting rooms, equipment rentals (postage meter, fax, copier, computer,
                                                furniture, phone system), office space
Repairs                                     Repairing business equipment (copier, computer, fax)
Supplies                                    Sales aids (cotton balls, swabs, bags, mirrors, paper plates)
Taxes                                       Local income tax (not federal or state)
Sales tax                                   Paid on inventory purchases
Travel                                      Air fare, hotel room, rental car, taxi or shuttle fares, parking, tips
Meals & entertainment                       Breakfast, lunch or dinner meetings, food while traveling, entertaining
Utilities                                   Related to rented office space
Wages or casual labor                       Office assistants
Telephone                                   Second line, long distance, calling features on home phone, cell phone
Internet                                    Monthly service charge
Bank & credit card fees                     Mary Kay bank account, credit card processing fees (on sales)
Dues & subscriptions                        Magazines, professional groups, chamber of commerce, networking groups
Workshops & seminars                        Registration fees and educational materials
Uniform & dry cleaning                      Red jacket, logo clothing, dry cleaning
Business gifts                              Individual gifts less than $25 each
Shipping & freight                          Freight on inventory purchases, stamps, shipping packages
Total cash expenses          $              (Not including product purchases)

Vehicle expenses:

Vehicle information:

Make, model, year                           (2007 Ford Mustang)
Date placed in service
Purchase price                              Only applicable if you own the vehicle (not Mary Kay car or leased car)

Standard mileage method:

Business miles                              Deduction equals 58.5 cents per mile for 2008
Personal miles
Total miles driven

Actual expenses:

Gasoline & oil
Repairs & maintenance                       Includes new tires, car washes, battery
Insurance
Property tax                                Paid once a year to county clerk
Interest on car loan                        Only if you own the vehicle
Auto club                                   Triple A

Home office expense:

Cost of home                                Original cost plus improvements, excluding cost of land (or lot)
Square footage of home
Square footage of office                    Includes inventory storage space
Mortgage interest                           Reported to you by your bank or lender
Real estate taxes
Homeowners insurance                        Renter's insurance
Repairs & maintenance
Utilities                                   Gas, electric, water
Rent                                        If renting a home or apartment
Direct expenses                             Paint or carpet in "office", shelving for storage, etc.

				
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