INCOME TAX DEDUCTIONS FOR YOUR MARY KAY BUSINESS

Use this as your guideline for tax purposes! Step 1. Take an inventory of all Section 1 merchandise on your shelf as of December 31 (wholesale value). The easiest way to do this is by using your company order sheet $__________ Step 2. Product purchases (Section 1 wholesale-January-December). If you are a new consultant within this past year, include the cost of your Starter Kit. $____________ Step 3. All sales income (retail value) included classes, facials, on-the-go appointments and reorder sales. $___________ Step 4. All other income (recruiting checks, company promotions, dovetail income, etc. – the company will send a Form 1099 for commissions and prize totals) $_____________ Step 5. Product used for personal use. $____________ Step 6. Inventory carryover from last year if you have been a consultant for more than one year. $__________ Step 7. Direct expenses: Customer Delivery Service used with Mary Kay to deliver products to your customers $________ Office supplies: labels, business cards, envelopes, paper clips, etc. $____________ Skin Care Class materials, company supplies, Hostess gifts and all Section 2 items such as washcloths, Disposable trays, brushes, (anything listed as Section 2 items on your order printouts) Product used for displays and to demo with $____________ Personal Use-products you use for your self at cost $_______ Hostess credits at cost $___________ Bad debts (Monies not collected on products sold) $____________ Bank charges (monthly service charges, Money Orders, cashiers checks, Propay cost and fees, business account checks, etc.) $__________ Interest paid on business loans, business credit cards $__________ Advertising Preferred Customer Program, Personal MK website $______________ Postage $ Shipping (company orders-shown on your printout for each order), stamps, out-of-town customers, etc.) $__________ Labor paid in home (housekeeper, casual labor, babysitter, etc.) $__________ Director suit or Red Jacket $___________ Sales taxes paid to company on product purchases $___________ Accountant fees $____________ Non-recovered sales tax you paid on sales and other that is not reimbursed by your customer $_______ (This would include sales tax you paid on anything that you used for your business-sales aids off of your print out, packaging, baskets, etc.)

Step 8. Auto travel expenses:$.56.5 cents per mile deduction for 2013 Total business miles driven (parties, deliveries, meetings, MK trips, etc.) $__________ Parking fees $____________ Taxi, Ground fare, or public transportation $___________ Car rentals $____________ Lodging (workshops, seminars) $___________ Meals and food expenses (out-of-town) $__________ Tips and baggage charges $__________ Laundry and cleaning (out-of-town trips, red jacket, director’s suit) $__________

Airline tickets $___________

Step 9. Miscellaneous sales expenses: Products given as Guest gifts for a guest that you had join you $_______ Guest events and recruiting expenses (brunches, lunches, dinners, meetings etc.) $__________ Charity donations of products (must have statement if over $250 value) $___________ Training, meeting room fees $__________ List all other miscellaneous expenses here: $ $

$ $ $

$ $ Step 10. Office in-home expenses: Rent $____________ Office equipment (Desk, copier, computer, file cabinet, etc.) $ Mortgage interest $_____________ Real estate taxes (city & county) $______________ Fire & mortgage insurance $______________ Telephone $________________ Utilities (portion of electric, gas, water, sewer bills, garbage collection) $______________ Repairs, maintenance of home $_________________ Home improvements in office area $__________________ Step 11. Other needed information Months you have been in your Mary Kay business ______________ Square footage of your home _____________________ Portion of your home used exclusively for your business office _____________ Amount of refund received on last year’s taxes ________________ Cost of your home _________________ Year you purchased your home _________________