While some recruiters claim big tax advantages by starting an Amway business, the Internal Revenue Service keeps a close eye on distributors who claim big deductions.
Distributors can’t deduct the cost of heating their homes just because they occasionally hold sales seminars in the living room. But they can deduct the cost of heating a room that is used solely for the business.
“It can’t be used as a guest room or a family room” during off-hours, said Shawn George, IRS spokeswoman from Seattle.
They can write off “reasonable and necessary” business travel, according to IRS regulations. But they can’t deduct “lavish or extravagant” vacations, even if they spend some time conducting business.