Do I have to include as income commissions earned by buying products from an MLM company I am signed up under that are for my own use, not resale?

[kschindler]

I am signed up as a consultant in an MLM freeze dried food company and buy products only for my own use, never have I sold anything to anyone else, and earned about $50 in commissions for 2018.  Do I have to add this to my income?  I considered it a discount on the products I buy, but is that how Revenue Canada will look at it?

[TurboTaxKim · Accepted solution]

If you are not earning any profits from your MLM "business", you do not have to include this as income. 

If you were selling the products to others and generating some income, you could complete the T2125 - Statement of Business Activities to report this income and reduce it by claiming your expenses as deductions. However, if your expenses exceed your income and you are constantly in a loss situation, CRA can look at this as a "hobby" and you have no "reasonable expectation of profit" (REOP) and disallow any loss claims you currently have, as well as adjust your prior year tax returns.

[Shannon46]

What if you are selling to a few people but you sell so much more to yourself that you're not making a profit. Do you still have to file? And if yes, where would you enter the amount you spent on products in order to note them as expenses?