What type of items can I write off in outside sales?
Adam G25 asked:
I have been in outside sales for many years, I am wondering if there is a way to write off part of my rent used as a home office. some meals out etc. My current situation is that I am employed by a large company with company vehicle, insurance and gas is included. I do expense meals flights and other business related expenses. However I use my home base as my office 50% of the time and my office at our branch location the rest of the time. Am I in any way entitled to claim against rent and other home office expenses? Would I have to get my companies consent on my tax return stating that I work from home?
Loretta
I have been in outside sales for many years, I am wondering if there is a way to write off part of my rent used as a home office. some meals out etc. My current situation is that I am employed by a large company with company vehicle, insurance and gas is included. I do expense meals flights and other business related expenses. However I use my home base as my office 50% of the time and my office at our branch location the rest of the time. Am I in any way entitled to claim against rent and other home office expenses? Would I have to get my companies consent on my tax return stating that I work from home?
Loretta
March 31st, 2009 at 12:13 am
Herbert
From your description, you are an independent contractor for a large company which supplies you vehicle, insurance and gas. You pay for all other expenses in performance of your work.You use your home as your office 50% of the time.
You are allow to deduct expenses you incurred in “production of income.” If you had to travel by air incurring lodging, meals and other miscellaneous expenses during your travel, they are deductible. You file Form 1040 and Schedule C - Profit and Loss from Business. There is an IRS publication for the instructions on how to fill out Schedule C and explains the type of expenses you can deduct. Go to and obtain (print out) the form and its instructions. You must also file Schedule SE - Self Employment Tax.
As to the use of your home, it is deductible. You don’t have to have your company’s approval for you to make the claim. Prepare Form 8829 - Expenses for Business Use of Your Home and follow instructions. Utilities, home repairs and other expenses for entire home also could be deducted proportionately by the usage (square footage of your office vs. your entire home) of your home.