Recall a couple of weeks ago when Usana executives said on their quarterly earnings call that Usana distributors couldn’t lose money unless they bought vitamins and threw them in the garbage?Well a Usana distributors’ group that calls themselves Income for Life Team demonstrates otherwise. On one page, they say the following about “investing” money in a Usana business:

  • A modest initial investment in products and business tools. This investment can be as low as $300, but we recommend purchasing all that you need at one time in order to get the optimum return on your investment. This requires from $1,400 to $1,500 (We know people who have borrowed from family or sold their television and other appliances to raise the money and are now very happy they did.) Remember, you will very likely recoup your investment in tax savings and you can sell the products in your initial inventory as well.
  • A monthly investment of approximately $125 in your choice of products so you can become .a product of the product. and realize the incredible benefits for yourself and your family.

Check out this income claim that I suspect could not be supported by any facts or data:

Some people who have busy, complicated lives, become an Income for Life Team distributor with the idea that they will just persistently invest a few hours a week and build their business very gradually. This is a fine strategy. If you persist and don.t quit, you will succeed in reaching $1,000. per week and more, though it may take a few years of slow and steady building. But what a great investment in your future!

And then there is the inaccurate and misleading tax advice:

Imagine deducting all your trips, even if you.re having fun while you.re on them, part of your home and all the expenses of running it, part of the meals and entertainment you share with your friends and family, your healthcare, your automobile, computer, fax, telephone, furniture, and on and on. You can employ your spouse and your kids, pay them salaries and deduct the costs. In short, any American or Canadian (and most other country.s citizens) who don.t have a home-based business are crazy!

If you set up your Income for Life Team business like a business and spend some time and energy on that business regularly with the full expectation of making money you can take more tax deductions than most .employees. can even imagine. In fact, if your expenses are greater than your income from your home-based business you can deduct the losses from your W2 income you earn at you regular job!

If you plan for these deductions at the beginning of the year, you can reduce the withholding your employer takes from your salary each month and have more money to invest in your business.

Imagine having a business that pays for itself BEFORE you earn a profit! We.ll show you how. Many people qualify for $2,000 in annual tax savings or more!

Here are just a few of the deductions to which your home-based business will entitle you:

  • Mileage to all business-related activities
  • A portion of square footage of your home
  • Office equipment, furniture and supplies
  • Major purchases necessary to your business . even a car
  • All educational materials and activities training you for your business
  • Trips with any business purpose including transportation, lodging, meals
  • Entertainment of any business prospect and/or associate
  • People you pay to assist you (hire your spouse or children)
  • Clothing with a company logo on it
  • Promotional materials and activities
  • Health care
  • And, many, many more.

There is also a page with comments about making “residual” income. I think they forgot the important fact that the vast majority of distributors never make a cent in commissions, so they certainly don’t have a residual income.

3 Comments

  1. braas 05/04/2007 at 12:26 am - Reply

    Hey, When talking about tax advantage, that means the advantage from tax. So there is noting regarding to residual income.

    You are an accountant. As long as the business make a commission, so the business cost is deductable. Which means people take this as a tax advantage, why not is a other benefit.

  2. Tracy 05/04/2007 at 12:28 am - Reply

    I don’t know about your country, but in the U.S. there are many more rules about tax deductions than you cited.

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