Wednesday, December 7, 2011

Amway Tax testimonial

http://www.quatloos.com/Q-Forum/viewtopic.php?f=5&t=694

"I met with a prospective tax client a few years ago. Combined, they both made pretty good money but, upon reviewing their prior returns, I noticed they also had a Schedule C that showed $6k-$7k loss year after year (about 7 years in total). Their prior preparer had warned them about the hobby loss rules but they had insisted they had a profit motive because they were eventually going to be making lots of money. I asked if this was Quixtar. They said "yes" and how did I know that. I told them the large losses year after year were a good sign. They didn't seem to get it. While the IRS hadn't noticed their losses (yet), they state had. While, the state wasn't denying the losses, it was asking them to review the hobby loss rules. I told them that they needed to quit this and they seemed offended. I told them where the people at the top really made their money (the tools) and they wouldn't believe me. They claimed that "no one makes money on the tools". They were well brainwashed. They had an canned answer for every comment I made. The cultlike brainwashing had done its job. Needless to say, I lost them as a client but I couldn't let them go on every year like this without saying something and besides, it was approaching April 15th and they were really really disorganized.

Earlier this year, I did talk our receptionist out of Quixtar. She is only 22 and had never heard of Quixtar or even Amway for that matter. I asked her if her sponsor was trying to get her to go to seminar. She said "yes". Apparently, there was one the next weekend that she "had to be at" (according to him) and it was about 500 miles away. He and a few of his prospects were going to roadtrip. She called him and quit. Well, at least I saved one.

The higher ups at Quixtar really don't want their downline to be successful. There is so much money made on those seminars that, if the downlines started actually being successful, they would stop coming."

7 comments:

Peter Reilly said...

I did a study of all the Amway hobby loss cases. The all pretty much came out the same. Even better the IRS has special instructions for agents about how to contact Amway.

http://www.forbes.com/sites/peterjreilly/2011/07/26/drag-racing-and-amway-fun-not-profit/

http://riles52.blogspot.com/2011/06/selling-soap-as-hobby-amway-ibos-in-tax.html

Anonymous said...

Dear Joe, I found your comment by accident. I used to build a Quixtar (Amway) business and loved it. I learned so much on how to succeed and it has helped our family immensely. I have to doubt the validity of your comment with your tax couple. After all, Quixtar went out quite a while back and the company has returned to its original name of Amway some time ago. It is not a secret that the tools are a base of income for the different pin levels. The higher your pin the bigger profit share you receive. This has been mentioned at small and major functions. That is where I found out about it. If anything it is a carrot to grow not to quit. I feel bad that you need to steel other people’s dreams. If you had some of your own you would know how important they are. Shame on you.

ExAmbot said...

Waoh! That is amazing and yet, it doesn't surprise me at all. That is what goes on. Ambots are well indoctrinated into believing that if the dream is big enough the facts don't count. IRS has never taken too kindly to that dogma. The sad part is if an ambot gets IRS audited they are in the hook all by themselves, while the cult leader who taught them this crap goes scot free. In fact those cult leaders don't even appear anywhere nearby to offer ambots any sort of help to deal with the IRS, especially if it's a lowly ambot.

Joecool said...

Anon@ 11:12, why did you "used to" build a quixtar business. Why did you stop? Did you suddenly become a bitter broke loser? LOL

Quixtar did not "go out" a while back. They changed back to Amway in 2009.

At one time, it was a big lie that diamonds told - that nobody made a profit from tools. Now they mention it but don't have a bonafide written compensation plan. Why is that?

LOL, tell me how that is stealing someone's dream? This poor IBOs lost tens of thousands of dollars to a scammer. Did you even read the article?

Rachel said...

As someone who makes over $120,000/yr in my own entertainment business (Self Employed) I had access to write offs that employees of companies could not have. For instance I was able to write off meals and massages and even my motorcycle and surf board because I used them as "Props" for a show. I can write off my car and part of my house. So anyone whose NET income went down because they started a business does NOT mean that they lost money. If anything, it just means they paid less tax. After my write offs, I claim about $15,000 NET INCOME but I live a very nice lifestyle. It's business.

Kristina said...

How can they "Make so much money on those seminars" If they're free??

Joecool said...

Rachel, I hope you don't get audited.