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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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What is tax deductible for being an avon representative

Resolved Question:

I work full time and also do avon on the side. Last year I spoke to volunteer tax preparer, he mentioned something being itemized or to just file w/claim mileage etc. I went with second choice but never got a chance to ask what if itemized. Can you explain to me please.
Submitted: 8 years ago.
Category: Tax
Expert:  Merlo replied 8 years ago.
Hello r lewis,

Your income from being an Avon representative is considered to be self employment. Your income from that is reported on Schedule C.

On Schedule C you may also deduct any expenses you had in connectin with earning your Avon income. This would include such things as business use of your personal vehicle or supplies or samples you purchased to give to customers.

When claiming an expense for use of your vehicle, you can either claim your actual expenses paid for fuel, oil, repairs, etc., or you may just claim a standard mileage allowance. The standard mileage allowance is the easiest to use and does not require that you keep receipts of your car expenses.

If you decide to use actual expenses, then you must figure the total miles you drove for business as a percentage of the total vehicle use. Example would be if you drove your car a total of 10,000 miles for the year and 2,000 miles were attributed to your Avon business, then you could deduct 20% of your actual car expenses for gas, oil, repairs, tires, etc., but you would need to have all the receipts for those expenses in order to use this method.

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Thank you.

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Customer: replied 8 years ago.

Another question, itemized or not would they still come out the same either way. Because I've tried keeping all receipts this time, kept mileage, tried to keep track on everything. The car maintenance as oil change I wanted to ask someone on the receipt it would says sales tax deductible and the amount that I'm being charged. Can I use that sales tax as part of my deductions? I don't want to sound stupid I don't really know tax. The person I try to ask last year wasn't very helpful, so I didn't bother asking.

Expert:  Merlo replied 8 years ago.
Hello again r lewis,

Yes, you can include the sale tax as part of the cost you paid for fuel.

It would be impossible for me to tell you whether or not you come out better using actual expenses or the standard mileage rate. You would really need to add up the receipts you have for your actual expenses and then figure what you could claim based on the percentage of time you use your car for business, and then see if you come out ahead that way or by using the standard mileage rate.

Every one's situation is going to be different. As an example, if you drive a big SUV that only gets 12 miles to the gallon, then you will probably be better off using actual expenses rather than the standard mileage rate. On the other hand if you have an economy car that gets 35 miles to the gallon, then the standard mileage rate would likely benefit you. It just really depends on that factor, plus the cost of all your repairs.

Merlo and other Tax Specialists are ready to help you