Best Practices Message- September
We can think of many great reasons for becoming an IBO – and many wonderful benefits to talk about with prospects who are considering building their own
Amway Independent Businesses. Our Best Practices specify that while we can share many benefits as motivation for becoming IBOs,
we cannot encourage people to start their own Businesses purely for tax benefits.
The Amway IBO Compensation Plan (“The Plan”) offers a great opportunity to make money, own a business, meet new people, and use and market premier products.
The Plan is not meant to be a source of tax benefits or relief, and it should not be confused with unscrupulous tax avoidance promotions. It is a violation of
the Rules of Conduct to promote tax benefits to prospects as a principal reason for becoming an IBO.
While there are provisions in tax laws that assist small business owners, no one should encourage a prospect to start an Amway Independent Business in order
to be able to deduct various personal living and travel expenses from their income. The tax laws are in place to help those who operate their businesses with the
honest objective of earning a profit – not as tax shelters. In those cases, and with proper record-keeping, IBOs can deduct most ordinary and necessary expenses
incurred in the operation of their businesses.. You should consult a qualified tax advisor (preferably a CPA/CGA) for specific guidance about your personal situation.
The IBOAI website contains some resources that IBOs may find helpful in this connection. You will find information about the booklet available to the
US and Canada (Bookkeeping 101) written by CPA, Joe DePetris on the website which can be quite helpful.
Please feel free to contact us if you have any questions.