Beachbody Coaching Tax Write Offs: Part 2

In part two of our series regarding Beachbody Coaching Tax Write Offs, we want to talk about what doesn’t count in terms of a tax write off. We also want to talk about the gray area that exists. In part one of the series; we talked about what you could write off. But just as important if you are considering getting into coaching is what you can’t write off come tax season. After all, no one wants the IRS knocking.

Again, let me remind you, I am not a tax professional and for detailed questions, you should consult a tax professional. However, I am a Beachbody coach and have been completing my freelance taxes now for nearly two years. I understand what I can write off on my itemized deductions and want to share what I know with you as I do with all of my coaches.

What doesn’t count as a Beachbody Coaching Tax Write Off?

Shakeology

Wouldn’t it be nice to be able to write off that miracle formula? But sadly, this is considered a personal use item even when you use it in your social media.

The exception to this is if you are promoting a recipe in a video or blog!

Performance Line

No, you can’t write off your liquid gold that gets you going in the morning before your workout. Wouldn’t it be nice if the government rewarded you for getting up early and showing enthusiasm in those Instagram stories?

Athletic Clothing

Ahhh again, wouldn’t it be great if the government wanted to pay you for working out? Sadly, this is not the case. Every time you shop at Nike or Under Armour or even LuLu, don’t plan on writing it down on your taxes. These are personal use items even when they appear in your Beachbody Advertising.

The exception to this is if you are purchasing something with the Beachbody logo on it and using it in a public way for advertising!

The Grey Area of Beachbody Coaching Tax Write Offs

The Home Office

Probably the trickiest area when it comes to tax write offs is a home office. Now, this is not exclusive to Beachbody Coaches. Many freelancers have trouble with this. Ask too much, you can trigger an audit and ask too little, you might be missing out on a huge deduction.

When it comes to your Home Office, this needs to be an exclusive area in your home to your business. Meaning, you are meeting your clients in the office or you are doing your business from this area. If you are working out from your basement, this probably will not fly with the IRS as your home office even though you are in the health and fitness world.

Why may you ask? They may see this as an office space; however, it will probably not be exclusively used. If there is a couch or pool table or other items that appear in those sweaty selfies you are hashtagging, remember that is all public information!

But if your office is a dedicated workspace exclusive to your home and business, this is the perfect case and point for a tax write off. My coaching business takes place in our smallest bedroom and I have been careful to document my office on my social media posts. There is also no other purpose it serves other than for my contracting business (both Beachbody Coaching and Social Media Consulting). Since both businesses are filed on the same tax form, I am able to write off the office as one.

Beachbody On Demand

This is a question you are going to want to ask your tax professional if you can write off your annual subscription. Why is this in the gray area? You are using it for personal use and personal gain. However, the other piece of this is that you are probably showcasing it in your social media, so wouldn’t that be considered promotion just like Beachbody clothing?

Hence, the gray area!

These are by no means all the things you can’t write-off when it comes to coaching but this is a list to help you get started in the crazy world known as tax season. As always, if you have a question about Beachbody coaching tax write offs consult a tax professional.

Considering Coaching

Every month my team does coaching sneak peeks so you can learn a little bit about what this coaching life is all about. Message me or leave a comment if you would like more details! And for all new coaches, each month, we run a 2-week long boot camp to help guide you through what your first month of coaching looks like.

You will make a great Beachbody Coach if:

  • You have a passion for helping others
  • Have a passion for health and fitness
  • You are hardworking
  • You are a self-starter

Things you don’t need to be to be a great Beachbody Coach:

  • In supermodel shape
    • In fact, some of the best coaches in the business are experiencing their own transformations
  • An expert at Health and Fitness
  • You do not have to have ever tried Beachbody products to be a coach; however, you should be willing to give them a try. After all, you need to be a product of the product.

Does this sound like you?

Apply to be part of our team or message me to learn more!

Beachbody Coach Tax Write Offs: Part 1

As a Beachbody Coach, I first want to say, I am not a tax professional. However, as someone who works in financial services and has been a freelancer for nearly 2 years and has had to pay quarterly taxes, create an itemized list of deductions, and worked with my tax professional, I have a good understanding of what I can deduct from my business and what I certainly cannot.

Becoming a Beachbody Coach has given me so much self-confidence, motivation and drive and I wouldn’t change a thing; however, there are a lot of misconceptions out there that when you have a “business”, even as a discount coach, you can write everything off including what you personally use for your workouts. This is not the case.

If you are thinking about getting into the business it is important to know that you will be a registered contractor and if you make over $600 throughout the course of your first year, you will receive a 1099 form from Beachbody. You should always claim what you make from a business; however, anything under $600 will not receive an official form. If you do make more than $600 than a copy of that official form goes to the IRS just like any other job.

There are many benefits and perks you can receive as a Beachbody Coach including:

  • 25% discount on all things Beachbody
  • Make amazing friends
  • Help so many people reach their health and fitness goals
  • Opportunity to earn free trips, prizes, apparel, swag, the list can go on and on

Through hard work, commitment and dedication to growing your business, you can truly reap the benefits. And these benefits do include the Beachbody Coach tax write off benefits.

What counts as a Beachbody Coach Tax Write Off?

Website Maintenance Fee

You know that Beachbody charges you approximately $15 a month to maintain your personally sponsored Beachbody website. You are able to write this off each month. Just track all of your receipts from Beachbody (credit card statements are fine).

Promotional Gear

Did you know anything you purchase that has the Beachbody logo on it that you wear out to an event, the store, to work out in can be written off? This is because you are using it to advertise the different programs. So feel free to stock up on your Beachbody swag!

Promotional Giveaways

Have you bought something to give away as a prize to one of your challengers or coaches that are crushing it? You can write that off too. Buying a bonus gift to give to someone who signs up for a challenge pack is an acceptable tax write off. For example, when Shift Shop launched in prep for our Bootcamp, I purchased 3 agility markers to give away to my challengers. That is a tax write off.

Social Media Ads

If you have run a social media paid campaign, you are able to write off those expenses; however, you must keep the receipts. Documenting and saving the email that Facebook sends you each month with your bill or your credit card statement will do.

Travel Expenses

If you are going to a business conference or Team Retreat or Offsite, did you know that you can expense everything surrounding that trip? We are talking airfare, mileage, hotels, ticket entry, etc. Again, this is an area you are going to want to talk to your tax professional about to ensure that everything you did during that trip is a write-off expense. For instance, that show you went too may not be covered. Again, talk to a professional.

Office Supplies

Are you writing notes to your challengers or coaches and sending them snail mail? Buying a new notebook for team call nights, pens to take notes? Yep, these are all write-offs too!

Please note, this is not a complete list of the tax write offs you can receive as a Beachbody Coach. If you are questioning if something is or is not a write-off, you should ALWAYS consult a tax professional.

Considering Coaching?

Every month, my team does coaching sneak peeks so you can learn a little bit about what this coaching life is all about. Message me or leave a comment if you would like more details! And for all new coaches, each month, we run a 2-week long boot camp to help guide you through what your first month of coaching looks like.

You will make a great Beachbody Coach if:

  • You have a passion for helping others
  • Have a passion for health and fitness
  • You are hardworking
  • You are a self-starter

Things you don’t need to be to be a great Beachbody Coach:

  • In supermodel shape
    • In fact, some of the best coaches in the business are experiencing their own transformations
  • An expert at Health and Fitness
  • You don’t have to have tried Beachbody products before signing up to be a coach

Does this sound like you?

Apply to be part of our team or message me to learn more!