Schedule C / Tally Sheet Consultants Take to Your Tax Preparer

Schedule C / Tally Sheet Consultants take to your tax preparer Business Code #454390 modified accrual-cash accounting/cost inventory G. yes Part III Cost Of Goods Sold Beginning Inventory: SECTION ONE ONLY Total wholesale amount of inventory on your shelf +______(January 1, 2000 taken off last year’s Year End inventory, don’t count section 2)

Total wholesale purchases in 2000 including Daily Benefits +______

Your personal cosmetic use (wholesale no tax) no gifts -______

Ending amount of wholesale products on your shelf December 31st, 2000 - ______(A) COST OF GOODS SOLD = ______Part I TOTAL RETAIL SALES +______(taken from Weekly Summary Sheets, w/out tax) MINUS REFUNDS -______MINUS COST OF GOODS SOLD (A) -______EQUALS ACTUAL SALES INCOME (B) -______

I. Income Your actual sales income (B) +______(B) Your total Recruiting commission (1099 form) +______Prizes won (figure taken from 1099 form) +______Dovetail fees paid you by another consultant +______(C) ACTUAL ONCOME TOTAL =______(C) II Deductions Line 8 Advertising Cost – posters, booths, ______retail display products + tax, ______business gifts + tax, ______Preferred Customer (keep copy of charge each time) ______Web site______Line 9 Bad Debt – uncollected sales + sales tax ______Bank Service Charge – money order charges, ______check service charges, ______annual credit card fees, ______service charges for customers VISA/MC ______Line 16b Interest on loans – (MK Visa/MC 100% deductible) ______Charitable deductions of discontinued product ______Membership Fees – Sam’s, professional clubs ______

II Deductions cont’d Car expenses Starting 2000 odometer reading ______End of 2000 odometer reading ______

Choose method 1 or 2 1. Total mileage (keep daily log) Jan – Dec # of miles x .32.5 ______= ______or 2. Repairs, insurance, lease/car payments, gas Wash, oil, tolls, gas, parking (keep records) %______

Other expenses Insurance on inventory or liability ______Dry cleaning red jacket or clothes at seminar ______Office cards, stamp, labels,____ printing ______any office supply____= ______Postage (save receipts)______UPS,______= ______Legal fees tax preparer (take fee here) ______Non recovered sales tax (retail product given away or personal use) ______Company prizes (prizes you have won for business use) ______Office equipment computer, ____phones______, desk, _____ files, ______larger expenses ______fax ______Sales aids and tax (taken from section 2 part of order) ______Freight +phone charges on all orders ______

Basic monthly phone charge (on 2nd line) ______Cost of call waiting and other business options______car phone expenses ______Long Distance related to Mary Kay ______Voice-tel Expenses internet ______

Dovetail pd to other consultants ______Showcase if purchased this year ______Class Expenses wash clothes, cotton balls, etc… ______Gifts flowers, business only ______Magazines books, tapes,news___ developing pix______- film, ______Entertainment classes in your home_____, guest luncheons ______meals while traveling for MK (seminar +career conference), ______recruiting coffees______banquets ______luncheons______50% is deductible - Keep dates and receipts, ______Workshops/meeting dues Chicagorama,____ retreats ______local event without food costs ______

Wages paid to office help ______SUBTOTAL______

Travel expenses: Seminar + Career Conference AIRFARE______HOTEL______REGISTRATION FEES______TIPS______CABS______=TRAVEL TOTAL______

DEDUCTIONS TOTAL______

III Office in Home Deductions (if applicable) See business Use of Home Sheet. This deduction cannot create or add to a loss figure. If you can’t use it this year, it can carry over to future years.

DEDUCTIONS TOTAL ______

HOME DEDUCTIONS +______if allowed

TOTAL DEDUCTIONS (D)=______(D)

TAKE ACTUAL INCOME TOTAL (C)______MINUS TOTAL DEDUCTIONS (D)______EQUALS PROFIT OR LOSS FIGURE ______

Addition forms may be needed. Depreciation form 4562 (home/car/large office expenses.) Office Home Form 8829 YOU MUST DO AT LEAST 50% OF YOUR BUSINESS AT HOME. Babysitting form 2441…if eligible

Self employed Social Security tax due on any profit over (see schedule SE) $400. If you pay this tax 50% is adjusted on your 1040 form.

If you are BOTH self-employed YOU may deduct 60 % of your health insurance premiums on Schedule A BUSINESS USE OF YOUR HOME

A. VALUE OF YOUR HOME ______1. Total original cost, plus improvement ______2. Cost of land ______3. Year purchased ______

B. Percentage of home used for business 1. Area of home used for business (square feet) ______2. Total square feet of home, finished basement, garage ______3. Divide #1 by #2 to get the % used for business ______

C. Direct expenses to business part of home 1. Painting of office ______2. Repairs to office ______3. Shelving, carpeting, etc ______

D. Total Direct Expenses (add #1, #2. #3) use 100% ______

E. Indirect expenses (you can only use % of business space on these deductions) 1. Real Estate Taxes ______X ______% = ______2. Mortgage Interest ______X ______% = ______3. Home Equity Interest ______X ______% = ______4. (OR) Rent ______X ______% = ______5. Water, Sewer, Garbage ______X ______% = ______6. Heat ______X ______% = ______7. Electric ______X ______% = ______8. Insurance ______X ______% = ______9. Roof Repair ______X ______% = ______10. Exterior Painting ______X ______% = ______11. Depreciation of Home ______X ______% = ______12. Lawn Service ______X ______% = ______13. Misc. (Housekeeper) ______X ______% = ______

F. Total Indirect Expenses ______X ______% = (______)

G. Add Direct Expenses (D) and Indirect Expenses (F) for total home office deductions TOTAL ______

THIS FORM 8829 CAN ONLY BE USED IF YOU ARE SHOWING A PROFIT ON YOUR SCHEDULE C. …. IF YOU ARE ALREADY AT A LOSS THIS YEAR, THEN KEEP THIS FORM FOR FUTURE YEARS THAT YOU NEED THE DEDUCTIONS WHEN SHOWING A PROFIT ON SCHEDULE C. mortgage - interest - & real estate are still allowed and forward other expenses to another year.

You may be asked to document that you have done at least 50% of your work in your home when taking these deductions. It’s best to mark your datebook whenever you are working at home on the phone, unpacking orders, classes, reorder visitors, placing orders, mailing and follow-up.