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Tax Deductions for Sales Professionals

What can a Sales Professional claim on tax? What can real estate agents claim on tax? Get the best deal on your tax return this financial year with tax deductions! Here are some tax deductible expenses for sales professionals, tax deductions for real estate agents, tax deductions for managers, and anyone involved in sales. Don’t leave anything. If you save every little bit, and deduct everything you’re entitled to, the return can be massive. What are the details though, and what are you taxed against? 

When it comes down to it, there are three main criteria that qualifies an expense for tax deduction, which is calculated against your income: 

  • You must have spent the money and not have been reimbursed 
  • It must be related to your job
  • You must have a record to prove it

However, this in itself can be hard to understand. What constitutes an expense as “related” to your job? Here is what defines your taxable income, and a list of sales professional tax deductions.

What Is Your Taxable Income

Your taxable sales professional income is money generated from your employer or your work. Your taxable income also includes:

  • PAYG summaries 
  • Pensions and government allowances 
  • Interest earned (banks etc)
  • Dividends 
  • Rental property income
  • Business income
  • Other income earned (capital gains etc)

Tax Deductible Expenses For Sales Professionals   

Sales Professional Specific 

  1. Buying uniforms and clothing relating to your sales job
  2. The cost to laundry clothes/uniforms that you use for your sales job
  3. Protective clothing items that you use for your sales work (if needed, masks, helmets, sunscreen etc) 
  4. Purchase of equipment and tools used for your sales work (demonstrative equipment and the likes) up to $300 
  5. Depreciation expense of equipment and tools over $300
  6. The repair and/or upkeep of sales tools and equipment 
  7. Interest generated from loans relating to work activities
  8. Self-education and courses that will improve your sales work/training tax deductions  
  9. Licenses for sales professionals (dealers licenses and the likes)
  10.  Work union fees/other similar organisations 
  11.  Subscriptions and magazines relating to your sales work
  12. Travel expenses if work related (conferences and going to see clients) 

Sales Professional Uniforms 

Your uniform that you buy or put in the laundry can only be claimed as a tax deduction if it has a logo of your business on it. If it is just a regular suit that you could wear elsewhere, then unfortunately it is not tax deductible. 

Home Office Expenses and Mobile

If you ever have to work from home, you can claim the expense back as a tax deduction. Additionally, if you use your personal mobile or internet for making calls and texts for your job, you can claim a percentage of that as a tax deduction. To work out how much you can claim, see a professional. 

Licenses 

If you ever need to pay for your dealers license, or need to pay for any license that will keep you working as a sales professional, you can claim that as a tax deduction. 

Travel Expense For A Sales Professional 

You can’t claim the cost it takes you to get to and from work as a tax deduction. But as a sales professional, you may have to do some travelling while at work to see clients and customers. If you are using your car, or public or commercial transport, you can claim this cost as a tax deduction. Additionally, you can claim the cost of travelling to a conference or exhibition out of your hometown. If you want to know the average car allowance for sales reps in Australia, or how much you can claim on these expenses, you should ask a tax accountant. 

General 

  1. Car expenses and general wear if your car use is work related (estimated Km or a logbook with all expense items)
  2. Travel expenses for your work (flights, taxis and trains etc)
  3. Accommodation needed on work reasons (including meals)
  4. Phone bills for work
  5. Work related computing 
  6. Working from home costs 
  7. Self-education 
  8. Tax return fees dating to the year previous 
  9. Insurances 
  10. Rental expense (if you are renting)
  11. Charity + gift deductions (including gifts to clients tax deductible ATO)
  12. Client entertainment expenses tax deductible ATO
  13. Sun protection (if you have to work outside)

Maximising Your Tax Return With An Online Tax Agent

There will be more sales rep tax benefits  and tax deductions that aren’t on this list. Tax deductions are not only industry specific, but also change from individual to individual.

The best way to claim the most you can is with a tax agent like One Click Life. We have made the process simple with 5 easy steps.

tax deductions for sales person
VOILA!

The more you deduct, the less tax you pay and the more money you can spend on yourself. Clearly, you will want to deduct the most you can, and the sure-fire way to do that is with a tax agent or accountant. If you can claim your tax agent/tax return fee back on tax, why wouldn’t you use one to minimise your tax?

One Click Life fast offers online tax returns at your fingertips in an easy-to-use platform run by industry professionals. 

Taxes, health insurance, and wills can be time-consuming and tedious. Our app allows you to be able to do this fuss-free, giving you a simple way to organise, track and manage all of your life admin in one place.
Let One Click Life take care of your tax return, and life’s essential tasks so you can spend more time doing the things you love.