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Zeekrewards - Zeekrewards.com
ee_858
post Jan 19 2012, 11:23 AM
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Hello All,

This post pertains to Zeek Affiliates who are US residents. It’s tax season and as a US resident, we will be required to report our income made with ZeekRewards on our income tax if we earned $600 or more. Rex Venture Group LLC will be providing individuals who earned $600 or more with a 1099-MISC. By law, 1099-MISC must be mailed out to individuals by January 31st. Another important document we will need from them is a Business Expense Report.

Something I noticed is that when you start making a huge income with ZeekRewards through the Retail Profit Sharing, that income will become a huge tax liability unless the bids that are purchased and given away to customers can be used as a deduction on our income tax.

For Example: (This is a HYPOTHETICAL example. These figures are NOT accurate as I am not an accountant. Obviously you would have to take into account income you earned from your job, deductions such as donations, interest paid on a mortgage, property tax, etc, but these is to give you an idea)

Let's assume that at the end of the year you earned $100,000.00 ONLY through the Retail Profit Sharing which the 80/20 Repurchase/Withdrawal Rule was applied.

Therefore, $80,000.00 was spent on repurchasing bids and $20,000.00 was withdrawn.

Assuming the $100,000.00 will be taxed at around 35% (this is just a guesstimate as I am not an accountant), you will end up owing $35,000.00 on taxes! Assuming you didn’t already spend the $20,000.00 that was withdrawn, that $20,000.00 will only cover a part of what you may owe. Before you go out and spend the money you earned from ZeekRewards, be aware that you might end up owing money on taxes.

A while back, I contacted Zeek's Affiliate Service and I was told that the bid samples are considered an advertising expense, just as a cosmetic sales person might purchase and give away samples of lipstick or perfume. It would be best to check with an accountant, but if this is true, the total amount spent on bids can be written off as a business expense which will greatly reduce our tax liability and offset the earnings.

I believe that in order for the Retail Profit Sharing portion of ZeekRewards to be successful for US residents, the purchased bids that we give away to customers must be written off as a business expense. This is the only way we can make a lot of profit since a vast majority of it is put back into the program through re-purchasing.

Zeek’s Affiliate Service also told me that the company will either send a report or we will have the ability to print out a report of the amount spent on bids and given to customers to show as proof of a business expense. This report is very important to have because based on the income example above, there will be a great chance the IRS will Audit you if you are trying to write off an $80,000.00 business expense. Hopefully we will be able to obtain this business expense report from them. That’s my input.
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soljaboy2012
post Jan 19 2012, 12:28 PM
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Well im pretty sure theres many affiliates who already made at least $600 least year including the moderator. I just hope they share or give a little insight to how their taxes go. After all, we are here to support each other while we all succeed in this business right?


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Serendipity2007
post Jan 19 2012, 12:31 PM
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QUOTE (ronm69 @ Jan 19 2012, 01:52 PM) *
Neena,

I am new this board but have been a diamond affiliate since the 8th and still waiting for my initial bid purchase to be posted to my account (mailed money order). I am also signed up with 5cc. However, I have earned some commissions from downline and immediately went into my cash available account and clicked BUY BIDS, and immediately the amount I bought showed up in my VIP balance. So, I guess based on my understanding, is that if we have signed up with the 5cc program, our bids are used immediately if we have been advanced bids for customers given to us. Does that sound right?

Thanks everyone for your info.


Hi ronm69,

Welcome to the ZR thread! smile.gif

So, I guess based on my understanding, is that if we have signed up with the 5cc program, our bids are used immediately if we have been advanced bids for customers given to us. Does that sound right?

If you are a 5cc subscriber, your bids will be given away automatically for you by the system. That's why the bids that you purchased via your Cash Available converted to VIP Points instantly. You won't see those customers right away. It could take a while before the co-op assigns actual customers to you. You will know those customers came from the co-op because they will have a (Z) in front of their name.

Please also try to sign up some customers of your own in an effort to help keep customer costs down. It is best to be in the 5cc AND try to acquire customers on your own.

Hope that's clear.

Neena

This post has been edited by Serendipity2007: Jan 19 2012, 12:31 PM


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geniusbider
post Jan 19 2012, 03:05 PM
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I do NOT agree. Zeek keep trying separate of the meaning of VIP Bids and VIP Points. Should we have to separate meaning of VIP Points and Cash Available!?
if you are using this example, saying we generate over 100,000 VIP Points for the last year, and we will have to pay 35%(depends where you at) TAX of VIP points earning. I think is a rip off !

If i am using 08/20 and withdraw 20,000 to cash available and Tax me on the amount i withdraw, then i am accept it.

no matter how much VIP points we are generate and grow, they are still VIP Points! Why I will have to pay tax of something i haven't earned. besides, all the vip points will retire after 90 days, so is government gonna write off me!?

what if i don't own a company to run zeekrewards, i can't afford to open a business title!? Then i have to pay full amount on my Tax !?

I think the fair way is, how much you withdraw from you account, that's how much tax you have to pay!



QUOTE (ee_858 @ Jan 19 2012, 11:23 AM) *
Hello All,

This post pertains to Zeek Affiliates who are US residents. It’s tax season and as a US resident, we will be required to report our income made with ZeekRewards on our income tax if we earned $600 or more. Rex Venture Group LLC will be providing individuals who earned $600 or more with a 1099-MISC. By law, 1099-MISC must be mailed out to individuals by January 31st. Another important document we will need from them is a Business Expense Report.

Something I noticed is that when you start making a huge income with ZeekRewards through the Retail Profit Sharing, that income will become a huge tax liability unless the bids that are purchased and given away to customers can be used as a deduction on our income tax.

For Example: (This is a HYPOTHETICAL example. These figures are NOT accurate as I am not an accountant. Obviously you would have to take into account income you earned from your job, deductions such as donations, interest paid on a mortgage, property tax, etc, but these is to give you an idea)

Let's assume that at the end of the year you earned $100,000.00 ONLY through the Retail Profit Sharing which the 80/20 Repurchase/Withdrawal Rule was applied.

Therefore, $80,000.00 was spent on repurchasing bids and $20,000.00 was withdrawn.

Assuming the $100,000.00 will be taxed at around 35% (this is just a guesstimate as I am not an accountant), you will end up owing $35,000.00 on taxes! Assuming you didn’t already spend the $20,000.00 that was withdrawn, that $20,000.00 will only cover a part of what you may owe. Before you go out and spend the money you earned from ZeekRewards, be aware that you might end up owing money on taxes.

A while back, I contacted Zeek's Affiliate Service and I was told that the bid samples are considered an advertising expense, just as a cosmetic sales person might purchase and give away samples of lipstick or perfume. It would be best to check with an accountant, but if this is true, the total amount spent on bids can be written off as a business expense which will greatly reduce our tax liability and offset the earnings.

I believe that in order for the Retail Profit Sharing portion of ZeekRewards to be successful for US residents, the purchased bids that we give away to customers must be written off as a business expense. This is the only way we can make a lot of profit since a vast majority of it is put back into the program through re-purchasing.

Zeek’s Affiliate Service also told me that the company will either send a report or we will have the ability to print out a report of the amount spent on bids and given to customers to show as proof of a business expense. This report is very important to have because based on the income example above, there will be a great chance the IRS will Audit you if you are trying to write off an $80,000.00 business expense. Hopefully we will be able to obtain this business expense report from them. That’s my input.



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pajki
post Jan 19 2012, 03:21 PM
Post #2420


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Thank you Neena!:)




QUOTE (Serendipity2007 @ Jan 19 2012, 06:38 PM) *
pajki,

Since day 1 of the 30-days starts on Feb 1, then it makes sense that they would give us until Feb 14 for the early bird special. This is not confirmed by corporate though.

Yes, Dawn stated that the link would go live some time on Monday night, Jan 23. I know I'll be there to check it out and complete the course as soon as it is live. I guess we'll see on Jan 23, won't we?

Yes, I was able to ask Dawn about how the Compliance Certification Course will affect Free affiliates. Here's a summary of what she said yesterday: They have to complete, pass the course and be certified within 30 days of joining just like any other premium level affiliate. Otherwise, they cannot represent ZR and cannot continue with the ZR opportunity. This is not just a Zeekler/ZR certification but also an industry certification. They just have to pay for the course. They can stay as Free. They are not forced to upgrade.

The 90-day clock doesn't start until your bids are given away and they enter your VIP Points Balance. It is not doing you any good to have the bids just sit there though. Try to sign up some people you know so your bids can be given away. Otherwise, you can join the 5cc. The longer it sits there, the more earnings you are losing everyday.

Neena

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vankhin02
post Jan 19 2012, 06:47 PM
Post #2421


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QUOTE (ibjulieb @ Jan 19 2012, 08:18 AM) *
There is no need for worry. It is a very simple to understand informational course followed by some easy questions. (my sponsor works in support) There will be 9 sections I believe. If you don't pass one section the first time, you can take it again and move on. This is not meant to prohibit people from participating in ZR, but is to ensure that they are aware of the various rules and regs that must be followed to protect the business from scrutiny. It will be educational and easy. No worries.


So do you know when it starts?

thank you!
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Birdie2
post Jan 19 2012, 06:55 PM
Post #2422


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QUOTE (ee_858 @ Jan 19 2012, 12:23 PM) *
Hello All,

This post pertains to Zeek Affiliates who are US residents. It’s tax season and as a US resident, we will be required to report our income made with ZeekRewards on our income tax if we earned $600 or more. Rex Venture Group LLC will be providing individuals who earned $600 or more with a 1099-MISC. By law, 1099-MISC must be mailed out to individuals by January 31st. Another important document we will need from them is a Business Expense Report.

Something I noticed is that when you start making a huge income with ZeekRewards through the Retail Profit Sharing, that income will become a huge tax liability unless the bids that are purchased and given away to customers can be used as a deduction on our income tax.

For Example: (This is a HYPOTHETICAL example. These figures are NOT accurate as I am not an accountant. Obviously you would have to take into account income you earned from your job, deductions such as donations, interest paid on a mortgage, property tax, etc, but these is to give you an idea)

Let's assume that at the end of the year you earned $100,000.00 ONLY through the Retail Profit Sharing which the 80/20 Repurchase/Withdrawal Rule was applied.

Therefore, $80,000.00 was spent on repurchasing bids and $20,000.00 was withdrawn."


I look at it different

EXAMPLE In my profit report Dec 31 It shows I had 20,000 vip points. For the year. I had withdrawn $5000 cash.
I think we should only get a form showing the company paid us for $5000. That 30,000 is points not money in our retail profit report.
It doesn't become money until we put it in the cash out bucket. The cash out bucket is our earnings.

All those figures are internal company software figures. If the company's server crashed tomorrow there would be no record of how many points we had, but we as individuals would know how much cash we earned.

I hope they hire a tax attorney to explain this instead of a company person doing what they think is right, because they may be wrong and that could harm many of us.

We pay taxes on our income, not on points in the US
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vajraman
post Jan 19 2012, 07:29 PM
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QUOTE (Birdie2 @ Jan 19 2012, 06:55 PM) *
I look at it different

EXAMPLE In my profit report Dec 31 It shows I had 20,000 vip points. For the year. I had withdrawn $5000 cash.
I think we should only get a form showing the company paid us for $5000. That 30,000 is points not money in our retail profit report.
It doesn't become money until we put it in the cash out bucket. The cash out bucket is our earnings.

All those figures are internal company software figures. If the company's server crashed tomorrow there would be no record of how many points we had, but we as individuals would know how much cash we earned.

I hope they hire a tax attorney to explain this instead of a company person doing what they think is right, because they may be wrong and that could harm many of us.

We pay taxes on our income, not on points in the US


This seems to be a more accurate assessment. ZeekRewards VIP Bids are not money. They are just digits until the company pays you. If the company was shut down tomorrow do you think you would be expected to pay taxes on 100,000 bids even though you only were paid $5000 or $10,000. I don't think so. The tax authorities want to see what you were PAID so they can steal a little from you! LOL

Since the tax man is not a member of Zeek they cannot steal you bids!

As long as the tax man is getting a good chunk of money from the taxpayers here they will be very happy about Zeek's success. That is good for Zeek in the long run. The looters will promote anything that allows them to steal more from you!



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NASDAQ
post Jan 19 2012, 07:34 PM
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QUOTE (Birdie2 @ Jan 19 2012, 06:55 PM) *
I look at it different

EXAMPLE In my profit report Dec 31 It shows I had 20,000 vip points. For the year. I had withdrawn $5000 cash.
I think we should only get a form showing the company paid us for $5000. That 30,000 is points not money in our retail profit report.
It doesn't become money until we put it in the cash out bucket. The cash out bucket is our earnings.

All those figures are internal company software figures. If the company's server crashed tomorrow there would be no record of how many points we had, but we as individuals would know how much cash we earned.

I hope they hire a tax attorney to explain this instead of a company person doing what they think is right, because they may be wrong and that could harm many of us.

We pay taxes on our income, not on points in the US


Hi Birdie2,

I watched a video last year where Paul was interviewed by a group of affiliates from the U.K. in his North Carolina office. During the interview, he stated emphatically, that the company would not be offering tax advice to it's affiliates. He also stated that any tax advice should come from a competent tax accountant familiar with the MLM industury.

I think it would be very unwise for any of us to take advice from ANYONE other than a tax accountant.



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rhackman2
post Jan 19 2012, 07:56 PM
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QUOTE (NASDAQ @ Jan 19 2012, 07:34 PM) *
Hi Birdie2,

I watched a video last year where Paul was interviewed by a group of affiliates from the U.K. in his North Carolina office. During the interview, he stated emphatically, that the company would not be offering tax advice to it's affiliates. He also stated that any tax advice should come from a competent tax accountant familiar with the MLM industury.

I think it would be very unwise for any of us to take advice from ANYONE other than a tax accountant.



Yes, this is true, but we cannot get a 1099 on points. As said, points are not money we received. If we cash things out, then that is earned income in which we would be taxed. If something happened and we never received $1 in cash, it does not make sense we woulc be taxed on something we never actually received? Hopefully, zeek can provide some update on this in the news section so people know how to plan 2012. Many people plan to build their business, but we all need to know what to expect so we can plan ahead.
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ckmiller
post Jan 19 2012, 07:59 PM
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how can i join to complete the training?
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Guest_momo22_*
post Jan 19 2012, 08:17 PM
Post #2427





Guests






Important questions for you guys...
For the first time I received commission from a person in my first level. I saw that it had an option for "request check". I clicked the link and then decided to click "buy more bids", assuming that I was buying more bids and my points would grow. So I clicked the buy more bids link, and noticed my points did not grow. And then went to the zeekler webpage and saw that the points were added there. Did I make a mistake by thinking I was buying more bids, that I was buying sample bids to give away, but in reality I was buying bids for myself at zeekler by mistake? Please tell me what happened, and what the best thing to do for the future is...

Also, I was given a 10% award and I am a silver. I thought only diamonds got 10%. Am I missing something? Thanks in advance!
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Birdie2
post Jan 19 2012, 08:30 PM
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QUOTE (NASDAQ @ Jan 19 2012, 08:34 PM) *
Hi Birdie2,

I watched a video last year where Paul was interviewed by a group of affiliates from the U.K. in his North Carolina office. During the interview, he stated emphatically, that the company would not be offering tax advice to it's affiliates. He also stated that any tax advice should come from a competent tax accountant familiar with the MLM industury.

I think it would be very unwise for any of us to take advice from ANYONE other than a tax accountant.


Maybe Paul will change his mind.
I think it would be nice if the company had a competent tax attorney explain to us how the irs can make us pay income tax on points.
How is any accountant not familiar with this company ever going to understand how this all works.
Id never be able to explain all those figures.

Oh I bought some bids and then they retired. They just dissapeared. I had some other bids and the company said I had to give them away to get paid. Every night I earned more bids, but I can't buy anything with those bids unless I go to the auction site, so they just accumulate as points. If I choose to withdraw those points then I can turn them into money and request payment
I hope you all come to see me in jail after they audit me and I finally understand how to fill out my income tax form.
OOHHH Yea its going to get interesting.
Maybe I should go to Canada and visit my relatives.
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masikk08
post Jan 19 2012, 09:08 PM
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$100.000 profit and 80/20 repurchase/withdrawal plan will give you $20000 profit. $80000 looks like business expense to me ,plus 5cc expense and monthly membership and if you advertise your websitethen it will also be any other expences you have accumulated during this process. So $20000-5 cc expences and monthly fees and whatever else you have spent during this year to run your business= will be taxable net profit. I am not an accountant and can not say if this is right or wrong.this is just my opinion.So it is better to consult a professinal,but I have claimed my income taxes from Amazon couple of years ago and this was how I calculated my profits and expences.


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rennn
post Jan 19 2012, 09:14 PM
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If you get a 1099 on the points you made, the IRS is going to think that is your income and there won't be much you can do to get around that !!f

As far as deducting the bids you give away, I have no idea if that is acceptable to the IRS, but a lot people are going to do that.

This post has been edited by rennn: Jan 19 2012, 09:15 PM


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