Tax Write-Offs for a Traveling Sales Person
- Car driver sitting in his new car image by George Dolgikh from Fotolia.com
If your travel includes trips by auto and you use your own vehicle, you can track miles driven and multiply them by the current IRS mileage rate. It is helpful to notate your odometer reading at the start and end of the year. But keeping track of business mileage as each trip occurs is critical. If you happen to be audited, your records will stand you in good stead. - Air and other ticketed travel costs are deductible for business trips.airplane image by Clarence Alford from Fotolia.com
Your airline, train, bus or other ticket expenses are deductible for business travel. In addition, if your spouse accompanies you on the trip, is a bona fide employee or partner in your business, and performs some business-related activity on the trip, such as attending meetings or conferences, her expenses are also deductible. - Meal expenses during business travel are deductible.dinner image by cherie from Fotolia.com
Fifty percent of your business travel meal and entertainment expenses are deductible. This is also true for your spouse's expenses if she is an employee or partner in your business and participates in business activities during the trip. - If you have a home office dedicated to your sales career, you can deduct rental (if you are a renter) and maintenance costs. The key is to calculate in square footage your office area, then divide that figure by your home's total square footage. Convert the result to a percentage amount, then multiply the cost of utility and other home maintenance costs by that figure. Entrepreneur.com recommends having a professional contractor measure your office space and then write a letter documenting the square footage figure. If the IRS questions your home office deductions, you will have documentation to support your case.
