Just got hired as a 1099, now question??

[Ancient Aged]

What is the name of your state? Maryland

Hi all, Here's my scenerio:
I just got hired as a 1099. It's a sales job (Selling group benefits (ie. group health & life insurance). They provide the leads, I set the appointments and meet with the clients and sell them.
I then get commissions from the certain Health or Life insurance carrier and I split it with my employer. I recieve NO salary and no benefits.
All they provide me is with an office space, computer and phone at my desk, and they pay the monthly parking fee at the office. (and leads obviously)
They also have a staff there that will be doing all of the administrative work for me. All I do is sell.
My block of business (which is groups I have sold benefits to) will also belong to my employer, in the event that I quit. I will have options of purchasing my block if necessary.

It's a M-F, 9-5 type job, but flexible hours (as long as I don't abuse it), as I should be out on appointments more than in the office.
But if I'm not out on appointments, I'm expected to be in the office calling leads.
Basically, as long as I meet the sales quota for the month, I'm ok.

Anyhow, my question is:
Does this mean I can write off everything I spend for business?

Like if I Lease a car, and use it strictly for business, can I write off the Lease payments, Fuel, mileage to and from office and clients, maintanence, etc.

Can I write off a %tage of my cell phone bill, suits I buy for business, etc?
Thanks for any help.
AA

 

[Rhubarb297]

What is the name of your state? Maryland

Hi all, Here's my scenerio:
I just got hired as a 1099. It's a sales job (Selling group benefits (ie. group health & life insurance). They provide the leads, I set the appointments and meet with the clients and sell them.
I then get commissions from the certain Health or Life insurance carrier and I split it with my employer. I recieve NO salary and no benefits.
All they provide me is with an office space, computer and phone at my desk, and they pay the monthly parking fee at the office. (and leads obviously)
They also have a staff there that will be doing all of the administrative work for me. All I do is sell.
My block of business (which is groups I have sold benefits to) will also belong to my employer, in the event that I quit. I will have options of purchasing my block if necessary.

It's a M-F, 9-5 type job, but flexible hours (as long as I don't abuse it), as I should be out on appointments more than in the office.
But if I'm not out on appointments, I'm expected to be in the office calling leads.
Basically, as long as I meet the sales quota for the month, I'm ok.

Anyhow, my question is:
Does this mean I can write off everything I spend for business?

Like if I Lease a car, and use it strictly for business, can I write off the Lease payments, Fuel, mileage to and from office and clients, maintanence, etc.

Can I write off a %tage of my cell phone bill, suits I buy for business, etc?
Thanks for any help.
AA

I don't know about "everything" but virtually all of the expense you mention you could write off as business expenses.

You probably couldn't write off mileage to the office. (The IRS does not allow commuting expenses to a person's office.) But mileage to meet clients, yes, that's probably deductible.

You don't get fuel AND mileage. The fuel expense is included in the IRS figure for reimbursement for travel. So you're entitled to take either the the standard rate for mileage or actual expenses.

A good tax program like Turbo Tax will walk you through what might or might not be deductible.

By the way, you're an independent contractor. They shouldn't be setting your hours in any way.. That's one of the factors, indeed a major factor, the IRS looks at when determining whether a person should be listed as an employee rather than an independent contractor.

 

[Ancient Aged]

Rhubarb,

Thank you for your reply.

They technically did not say, you have to be here from 9 to 5. They said come in whenever and leave whenever, but just don't "abuse" it (meaning, come in at 10 and leave at 2 everyday, and not make the sales quota.)

I did some research and found that you are correct, that I can only either write off the Lease payment, fuel, insurance, maintanence, etc. (Actual Expense) OR write off the mileage to and from clients. I think in my case, it would be more beneficial to write off the Actual Expense, since Lease payments and fuel can be hefty.

I also found that you can write off 50% of entertainment and meals used for business (must be business related, ie. with clients)

But I never did find out if I can write off part of my cell phone bill I use for business or any suits I purchase that I use for business, supplies etc.??

But anyhow, thanks for your expertise.
AA

 

[Snipes5]

Cell phone for business, yes.

Suits, no. Whether you wear them at other times besides business doesn't matter, the fact that you CAN makes them not deductible as a business expense.

Snipes

 

[Ancient Aged]

Cell phone for business, yes.

Suits, no. Whether you wear them at other times besides business doesn't matter, the fact that you CAN makes them not deductible as a business expense.

Snipes

Understood.

Thank you both for all your help. Take care.
AA