1 The Vivint Reimbursement Workflow
When you spend money on a trip (meals, tolls, lodging) that Vivint is paying you back for, we use a specific workflow to ensure the income and expense match 1:1. This ensures you don't pay tax on the reimbursement and allows for optimized deductions.
How to handle these on the platform:
- Tag as Reimbursable: When you spend money on a completely reimbursable trip (meals, tolls, etc.), you MUST add a tag as Reimbursable
- Unique Trip Naming: Add whatever city/name you want for your own records (e.g., "Miami").
- Handling Multiple Trips: If you are doing multiple trips for the same client, name them sequentially: "City 01", "City 02", etc.
- Why? We need a 1:1 match between your spending and the specific reimbursement deposit you get from Vivint. This process maximizes your tax write-off and eliminates your tax liability on that income.
2 Sales Rep Incentives & Prizes
When you award prizes or bonuses (e.g., shoes, tech, cash) to your sales reps, you have three distinct ways to handle the tax impact:
A Vivint Corporate Reimbursement
How it works: You pay for the prize and submit it to Vivint for reimbursement.
Tax Impact: This follows the reimbursement workflow above. Vivint covers the cost, and Vivint handles assigning the tax liability to the sales rep's 1099.
Result: Zero tax liability You get a 1:1 match on your books.
B Local Business Bonus (LiveLife)
How it works: You pay for the prize directly from your business account and keep the deduction.
Tax Impact: This is coded as 6860 · Bonuses and Commissions. At the end of the year, we will aggregate these values and include them on the rep's 1099-NEC.
Compliance: We MUST have a W-9 on file for the rep, and the transaction must be linked to that specific rep on the platform.
Result: 100% tax write-off The rep pays the income tax on the prize value.
C The MDNT "Brand Ambassador" Pivot
How it works: The rep is officially classified as a Brand Tester/Influencer for MDNT. Ideally, MDNT makes the purchase directly to keep the R&D deduction inside the fashion entity.
Tax Impact: The prize is treated as an R&D Research Sample. MDNT buys the item, and the rep provides a feedback report.
Compliance: A Brand Ambassador Agreement must be signed and on file for the rep to qualify for this treatment.
Result: Most tax-efficient Often tax-free to the rep while remaining 100% deductible for the brand as research.
3 The "Research Pivot" (MDNT Brand Development)
For your own R&D items (designer clothes, fitness tech, etc.), the strongest audit protection comes from MDNT making the purchase directly.
The Funding Model: LiveLife → MDNT Sponsorship
Since LiveLife is the primary income generator, it "funds" the research by paying MDNT a Management Fee or a Marketing Sponsorship.
- On LiveLife's books: This is a simple, 100% deductible business expense (Marketing/Management Fee).
- On MDNT's books: This is income, which is then used to buy the research samples.
- Why? It is much easier to defend a $2,000 fashion purchase as "Market Intelligence" in a fashion company (MDNT) than in a sales group (LiveLife).
How to handle these on the platform:
- Direct Purchase: Whenever possible, use an MDNT-specific card for these items.
- Intercompany (Back-up): If you use your LiveLife card, we must code it as a Loan to MDNT so the account "belongs" to the fashion entity.
- The "Feedback Loop": You MUST have a record of the research.
Action: Send a quick photo or text log (e.g., "Testing sole durability and fit for MDNT V1") every time you buy one of these items.
System: We link these logs directly to the transaction to prove it wasn't just personal shopping.
4 Owner Distributions vs. Personal Expenses
To protect your Corporate Veil (your legal shield), we need to distinguish how you take money.
- Owner Distributions (The Right Way): Transfer a lump sum (e.g., $5,000) from Business Checking to Personal Checking. Use your Personal card for groceries, clothes, and family.
- Personal Expenses (The "Cleanup"): If you accidentally swipe your business card at Publix, we will code it as a "Personal Expense." This is a "correction" on the books.
⚠️ Note: Too many personal expense corrections can make your company look like an "alter ego," which is a legal risk. Aim for fewer swipes and more "Lump Sum" transfers.
5 Cash & ATM Withdrawals
Cash is the hardest thing to track.
- Default: All ATM hits are logged as Owner Distributions (Money to you).
- The Write-off: If you use that cash to pay reps or buy supplies, upload the receipt immediately.
- Benefit: Without a receipt, that cash is "Personal" and you pay tax on it. With a receipt, it becomes a "Business Deduction" and you save money.
💡 Pro Tip: Snap a photo of every cash receipt immediately. No receipt = no deduction = more taxes.