Tax Preparer writes me
|I have never been a distributor, but I
worked for many years for a tax preparer that specialised in the Amway/Quixtar business.
Having seen 1000's of tax returns filed by distributors over 20 years I can say that in my
experience it was probably only about 1% who actually made a net profit from the business
and even less than that who made large amounts of money. I guess what I am saying is that
whilst it is true that this business can make money, it is the exception rather than the
rule. I admire your site, and I think that it alerts people to the fact that the promises
made by many distributors are wildly overstated.
The clients were either referred to us, or we got them by having a table at some of the major functions. In the 70's we had a client couple who eventually became a diamonds and they referred their downline to us, it basically expanded from there. During the time that I was there we were actually pretty successful with the audits, however I havent been there for a couple of years, so I dont know how they are going now. I do know that CA's in Canada are having difficulty with CRA and that they will pretty much only give you 2 years of losses before they start to look at your business, and disallow it as a deduction.
In the years that I worked there, seeing PIN's from 6% to diamond, I would say that the average IBO would lose $4,000 pa when you take into account Home Office, travel and Motor Vehcile expenses.