Count on the Truth Radio host Ken Nielson on Taxes and Home Based Business with Peter Mingils

Ken Nielson hosts this weekly Count on the Truth Radio show where he talks about taxes and the MLM Industry on Building Fortunes Radio Show with Peter Mingils. On this show, Ken Nielson talks about taxes and the benefits of Home based business. Unlocking Tax Advantages by working a Home based business. Running a Home-Based MLM Business In the dynamic world of multi-level marketing (MLM), where entrepreneurs build networks from the comfort of home, tax benefits can significantly boost your bottom line. As a home-based business owner in MLM—think companies like Amway, Herbalife, or your own network marketing venture—you're not just earning commissions; you're positioning yourself for smart tax savings. These perks stem from IRS rules treating your operation as a legitimate business, provided you maintain proper records. Note: This isn't tax advice—always consult a CPA or tax professional for personalized guidance, especially with evolving laws as of 2026.The Home Office Deduction: Your Space Pays OffOne of the most appealing advantages is the home office deduction. If you dedicate a portion of your home exclusively to business activities—like hosting virtual meetings, managing inventory, or recruiting downlines—you can deduct a percentage of household expenses. Calculate this based on the square footage of your office space relative to your home's total area. For example, if your home office is 200 square feet in a 2,000-square-foot house, that's 10% deductible.What qualifies? Mortgage interest, rent, utilities (electricity, water, internet), property taxes, insurance, and even repairs. In 2026, the simplified method allows a flat $5 per square foot deduction (up to 300 sq ft), capping at $1,500, making it easier for beginners without itemizing every bill. This can shave hundreds or thousands off your taxable income annually, turning your living room setup into a tax-efficient headquarters.Deducting Everyday Business ExpensesMLM thrives on relationships and promotion, and the IRS lets you write off costs that keep your business humming. Supplies like marketing materials, product samples, business cards, and software for tracking sales are fully deductible. Phone and internet bills? Prorate the business portion—say, 50% if half your usage is for MLM calls and social media outreach.Travel is another goldmine. Attending conventions, training seminars, or meeting prospects? Deduct mileage (at the 2026 standard rate of about 65 cents per mile), airfare, lodging, and 50% of meals. Vehicle expenses can add up quickly in network marketing, where face-to-face connections drive growth. Just log your miles meticulously to avoid audits.Health and Retirement Perks for the Self-EmployedAs a solopreneur, you're on the hook for self-employment taxes (about 15.3% for Social Security and Medicare), but offsets abound. The self-employed health insurance deduction lets you subtract premiums for yourself, spouse, and dependents directly from adjusted gross income—potentially saving thousands if you're not on an employer's plan.Retirement planning shines too. Contribute to a SEP-IRA (up to 25% of net earnings) or Solo 401(k) (up to $69,000 in 2026, plus catch-up if over 50). These reduce taxable income while building wealth, far exceeding traditional IRA limits. In MLM, where income can fluctuate, these vehicles provide stability and tax-deferred growth.MLM-Specific Tax StrategiesInventory management in MLM offers deductions for cost of goods sold—purchase price minus ending inventory value. Training courses, online tools, and even home party supplies qualify as education or advertising expenses. If you're in direct sales, bad debt from unsold products might be writable off.However, beware pitfalls: The IRS scrutinizes MLM for hobby vs. business distinctions. Profit motive is key—show consistent effort through schedules, business plans, and separate bank accounts.Final Thoughts: Maximize with Professional HelpA home-based MLM business isn't just flexible; it's a tax-smart choice that can lower your effective rate and reinvest savings into growth. From home deductions to retirement boosts, these advantages empower network marketers like you to thrive. Peter, with your expertise in network leads, leveraging these could amplify your success. Start by tracking everything digitally for easy filing. Remember, tax laws change—partner with a tax advisor to ensure compliance and optimize benefits. Here's to building your empire, one deduction at a time! Ken Nielson also started a new website:https://poweryourprofits.com IF YOU NEED TO MAKE SOME MONEY BEFORE CHRISTMAS check these new sites out: https://itstime4wealth.com https://itstime4success.comJust a highlight from last week: Some great New news for Health brought to us by Ken Nielson: https://www.natureoflongevity.com/ — Douglas Mulhall https://www.natureoflongevity.com/restoringelasticinyourbody There are several ways to earn a monthly income with MLM ...