Jan 8, 2013

Tax Organizer for Sales Representatives




KEY EXPENSES FOR SALES REPRESENTATIVES
 
A   AUTO TRAVEL
Your auto expense is based on the number of qualified business miles you drive. Expenses for travel between business locations or daily transportation expenses in going between your residence and temporary work locations are deductible; include them as business miles. Your trips between home and the office each day or between home and one or more regular places of work are COMMUTING and are NOT deductible.
 
Document business miles in a record book as follows: (1) Give the date and business purpose of each trip; (2) Note the place to which you traveled; (3) Record the number of business miles; (4) Record your car’s odometer reading at both the beginning and the end of the year. Keep receipts for all car operating expenses-gas, oil, repairs, insurance, etc., and any reimbursement you received for your expenses.
 
B   TRAVEL – OUT OF TOWN:
Expenses of traveling away from “home” overnight on job-related and continuing-education trips are deductible. Your “home” is generally considered to be the entire city or general area where your principal place of employment is located. Out-of-town expenses include transportation, meals, lodging, tips, and miscellaneous items like laundry, valet, etc.
 
Document away-from-home expenses by nothing the date, destination, and business purpose of your trip. Record business miles if you drove to your out-of-town location. In addition, keep a detailed record of your expenses-lodging, public transportation, meals etc. Always list meals and lodging separately in your records. Receipts must be retained for each lodging expense. However, if any other business expense is less than $25, a receipt is not necessary if you record all of the information in a diary. You should keep track of all the full amount of meal and entertainment expenses even though only a portion of the amount may be deductible.
 
C   CONTINUING EDUCATION:
Educational expenses are deductible under either of two conditions: (1) Your employer requires the education in order for you to keep your job or rate of pay; or (2) The education maintains or improves your skills as a Sales Representative. Costs of courses that are taken to meet the minimum requirements of a job or that qualify you for a new trade or business are NOT deductible.           
  
D   EQUIPMENT PURCHASES:
Record separately from other supplies, the cost of business assets which are expected to last longer than one year and cost more than $100. Normally, the costs of such assets are recovers differently on your tax return than are other recurring, everyday business expenses like business cards, office supplies, etc.
 
E   SUPPLIES & EXPENSES
Generally, to be deductible. Items must be ordinary and necessary to your business profession and not reimbursable by your employer.
 
F   TELEPHONE EXPENSES:
The basic local telephone service costs of the first telephone line provided in your residence are not deductible. However, toll calls from that line are deductible if the calls are business related. The costs (basic fee and toll calls) of a second line in your home are also deductible, if used exclusively for business.
 
G   PROFESSIONAL FEES & DUES:
Dues paid to professional societies related to your profession are deductible. However the cost of initial admission fees paid for memberships in certain organizations or social clubs are considered capital expenses
 
H   MISCELLANEOUS EXPENSES:
 
Expenses of looking for new employment in your present line of work are deductible – you do not have to actually obtain a new job in order to deduct the expenses. Out-of-town job seeking expenses are deductible only if the primary purpose of the trip is job-seeking, not pursing personal activities.

 
 
AUTO TRAVEL
Between Jobs or Job Locations
 
Client Meetings
 
Continuing Education
 
Job Seeking
 
Out of Town Business Trips
 
Purchasing job supplies & Materials
 
Professional Society Meetings
 
Parking Fees
 
Tolls
 
Other:
 
 
TRAVEL – OUT OF TOWN
Airfare
 
Bridge & Highway Tolls
 
Bus & Subway
 
Car Rental
 
Laundry
 
Lodging (do not combine with meals)
 
Meals (do not combine with lodging)
 
Parking
 
Porter, Bell Caption
 
Taxi
 
Telephone Calls (including home)
 
Train
 
Other:
 
 
CONTINUING EDUCATION
Correspondence Course Fees
 
Materials & Supplies
 
Course Registration
 
Seminar Fees
 
Reference Material
 
Text Books
 
Photo copy
 
Other:
 
 
EQUIPMENT PURCHASES
Answering Machine
 
Calculator
 
FAX Machine
 
Pager
 
Telephone
 
Other:
 

 
 
 
 
 
 
 
 
 


SUPPLIES & EXPENSES
Advertising,
Bank Charges
Bookkeeping
Business Meals (enter 100% of Expense)
Business Cards
Clerical Service
Computer Software
Computer Supplies
Customer Lists
Entertainment (enter 100% of Expense)
Equipment Repair
FAX Supplies
Gifts
Greeting Cards
Legal & Professional Services
Office Expenses
Photocopy Expense
Postage
Rent
Shipping
Trade Publications & Map Book
Other:
 
PROFESSIONAL FEES & DUES
Association Dues
License
Union Dues
Other:
 
MISCELLANEOUS EXPENSES
Resume
Liability insurance – Business
Subscriptions
Professional Subscriptions
Other:

TELEPHONE EXPENSES
Cellular Toll Calls
Fax Transmissions
Paging Service
Pay Phone
Toll Calls
Other:

1 comment:

Tom Watson said...

The bottom line is that education tax breaks are generous and plentiful. Did you take the right one this year Matawan Tax Return Service