qbteachmt
Level 15

"She doesn't have a website and claims she doesn't sell anything."

Well, it's possible to provide coaching and even conferences, and provide products in support of your teachings. This is the part that matters:

"which she claims she kept for personal use"

Then this is not business expense. I can be a Hair Stylist; if I buy $5,000 of shampoo for myself, not for my business activity, then I might have an issue between myself and the sale tax agency, of course, but this is personal use.

"I don't think it is possible to get $10,000 in commissions by purchasing $9,000 of products."

That might or might not be where the money comes from. It can be referrals, or marketing sessions, or? Only she knows.

What she has to know is, she doesn't seem to have many expenses, which is not a problem, either.

*******************************
"Level Up" is a gaming function, not a real life function.
0 Cheers