Home Office Use

• Some salespeople may primarily work at home as opposed to being on the road, such as a home-based telemarketer or insurance agent. According to IRS.gov, home-based workers can deduct a portion of the costs of their mortgage interest, insurance, utilities, repairs and depreciation. The permitted deduction amount is based on the percentage of the home office's square footage in relation to the home's total square footage. For example, if the home is 2,000 square feet and the office is 400 square feet, the salesperson could deduct 20 percent of the cost of the eligible expenses. To be eligible, the designated area must be dedicated to business use only and must be the salesperson's principal place of conducting business.
  
  

Vehicle Expenses

• Many salespeople depend on their vehicles to canvass territories or travel to client meetings. Salespeople who use their personal vehicles for business purposes can deduct their vehicle-related expenses by choosing one of two methods. They can use the standard mileage rate, which is 50 cents per mile, as of 2010. A salesperson driving 10,000 business miles during the year, for instance, could deduct $5,000. The other method is to deduct the amount of actual expenses incurred, such as gasoline, oil, depreciation and repairs.
  
  

Entertainment Expenses

• Salespeople often entertain clients or prospects, such as taking them to dinner or sporting events. The IRS allows the deduction of 50 percent of unreimbursed entertainment expenses. To qualify, the expenses must be common to the particular type of business and deemed necessary as well as helpful and appropriate for gaining or retaining business. While the intent of the occasion is to entertain the client, it is essential that business be conducted or discussed during the event.
  
  

Travel-Related Expenses

• Some salespeople must travel outside of their regular work or residence areas. The IRS defines traveling away from home as conducting business duties that require being away for substantially longer than a normal day's work, and where sleep or rest is needed to meet the demands of the job. In general, traveling salespeople can deduct expenses such as transportation by airplanes, taxis or trains, as well as hotels and meals during this time. The expenses must be considered ordinary and necessary.