Sales Executive Saves $58,000 with Commission Income and Deduction Strategy
As a VP of Sales earning significant commissions, I had substantial unreimbursed business expenses -- travel, client dinners, conference attendance, vehicle costs, and a home office where I work remotely three days a week. My previous CPA said there was nothing I could do about the unreimbursed expenses after the TCJA eliminated the deduction for employees.
AE Tax Advisors found a different path. They helped me restructure my compensation arrangement with my employer to include an accountable plan that reimburses legitimate business expenses tax-free. The expenses I was paying out of pocket now flow through the plan, reducing my taxable income without changing my employer's total cost.
For the portion of my work that involves independent consulting and speaking engagements, they set up a separate entity. This allowed me to deduct business development expenses, travel, professional memberships, and technology costs that were previously non-deductible as an employee.
They also identified three years of missed deductions from before the TCJA changes took effect and amended those returns. The combination of the accountable plan, side entity, and amended prior returns saved me $58,000 in total.
The team understood the corporate sales world -- the travel patterns, the entertainment obligations, the vehicle requirements. They did not ask me to justify why I take clients to dinner or why I need a premium vehicle. They just made sure every legitimate expense was captured and properly deducted.
If you are a high-earning sales professional with significant unreimbursed expenses, AE Tax Advisors can find savings your CPA told you do not exist. The strategies are real and the results are measurable.