There are many business opportunities to earn an extra income or a full time income. Many will turn to a direct sales or networking marketing opportunity.
The direct sales and networking marketing industry is a popular option for many because it allows for low overhead and the opportunity for a high income, if and only if, you run it as a business. That part is a challenge for most and many times the difference between success and failure.
Now, the key is NOT your definition of what running a business entails, but what the IRS says about it.
The IRS had a $300 BILLION tax gap and they know there are suspicious activities for which individuals will start a “business” where really it was a way where expenses that where incurred could be written off as a loss against earned income… (not a real business, just a way to justify money you would have spent anyways so now you want to turn it into a tax write off).
On the list of IRS suspicious activities include:
- Horse Racing
- Direct Sales/Network Marketing
Why is direct sales/network marketing on the list? The IRS knows the pattern for this industry and why 95% are really running a hobby and not a REAL business:read more