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Posted

I have a client who became a Pampered Chef associate this year. I am concerned about how inventory and sales are determined. Does anyone have any tips or guidance? Most of my clients are W-2 folks or retired.

Posted

Your client should get a 1099 from Pampered Chef for the commissions and any bonuses earned. There shouldn't be any inventory; when I've attended such parties, you place an order and the rep then delivers your product. Should have demo expenses (they prepare food to show off the products at the parties), mileage, and demo equipment they've bought.

Posted

Wife has purchased several items and likes them very much.

As to the original topic, I had a Pampered Chef rep. come to me last year wanting their return done ASAP to be able to fill out financial aid forms.

I wasn' able to accomodate in their time frame but did look over their info, while they were here.

It seems to me I had an issue how Pampered Chef reported certain information. As i recall she had won a number of incentives some nominal but a couple trips as well which I questioned as how the value of these items were determined as they should have been included in income as well.

Posted

I love the pampered chef items. They have the best can opener (manual) and the best apple corer/slicer. I have seen there cooking stones for baking cookies, but I was not impressed. I think a non-stick cookie sheet is still better than the stones, but alot of people like them.

As for the tax return, I have not done one, but I would treat it like Avon or tupperware or any other home sales business. If they have inventory to show at their parties, then they have inventory. Having inventory also means they have to have a place to store the inventory (which is one of the valid reasons to have an office in the home). And if they have an office in the home, then they have mileage from the office to everywhere they go for their business. Good mileage logs are nice to have, but if you have not trained your client about that yet, then you can use the sales logs to figure out where the parties were and google or mapquest the route for the miles.

Don't sweat it, it is a fairly simple sch. c if your client is willing to listen to you.

Tom

Lodi, CA

Posted

The cooking stones are great for pizza though!

when I bought from them, the rep had only samples, no inventory. You placed your order with the rep, the rep ordered from the company, and then delivered the goods after they came in.

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