The taxpayer may incur car expense recruiting other downlines, but care should be taken to determine if the primary purpose is to visit friends or relatives. If the taxpayer is selling retail, he may have to deliver the products. The examiner should be alert to the taxpayer writing off trips to visit friends or relatives in distant cities and claiming the purpose of the trip was to deliver products or recruit. The taxpayer may also deduct vacation trips. It appears that Amway distributors think that they only have to mention Amway to make any visit, trip, etc.
Most gifts are for close friends or family members and are personal in most cases.
Any demonstration of Amway products would have a minimal cost to the distributor and should be well documented as to when, where, why, and who. The demo products should be kept separate. Using a small sample of a product for demonstration and then using the rest for personal use is a personal expense. Taxpayers frequently write off long distance calls to friends and refatives claiming they were trying to sign up downlines or sell product. Many taxpayers try to write off their entire phone bill.