Tax Planning: Don’t Forget These Tax Write-Offs for Real Estate Agents

No one knows the “spend money to make money” philosophy better than real estate agents. Realtors were investing time and money long before they stuck a “For Sale” sign in the ground. You can’t reclaim your time, but you can recoup some of the cost of doing business with tax write-offs. Don’t know where to start? Here are some of the most common tax write-offs for real estate agents.

Licenses and Fees

If you're embarking on your real estate journey, you've incurred considerable upfront costs, including pre-licensing real estate courses, application fees, and exam fees, which are tax-deductible.

Once fully licensed, real estate agents must also pay annual fees. These include renewal fees for your state license, MLS dues, and additional membership fees. Go ahead and write all of these off.

Insurance Costs

Real estate agents typically carry business and Errors & Omissions insurance; both are fully deductible.

Commissions Paid

Unless you represent the buyer and seller, you’ll pay commissions to other agents. Commissions add up, so go ahead and write them off.

Property Marketing

Did you promote a listing using paid advertising on social media, pay a photographer, or purchase business cards and listing signs? Good. All of this is tax deductible.

Software

You can write it off using lead-generation software like Infusionsoft, Paradot, Marketo, or a similar marketing automation tool.

Phone, Accessories, and Monthly Bill

Chances are you use your phone to do business. But don’t forget you can also write off your monthly phone bill and accessories like cables, chargers, and protective cases.

Office Supplies

Office-related expenses like printing, ink, paper, computers, iPads, monitors and other office supplies are tax deductible.

Vehicle Expenses

Realtors typically spend as much time behind the wheel as they do on the phone—or walking through homes. So don’t forget to write off some of these essential vehicle expenses:

• Gas: You can’t control the ebb and flow of gas prices, but you can write off a portion of each fill-up.
• Maintenance: Maintenance costs like oil changes are deductible if you use your vehicle for work.
• Insurance and Registration: Vehicle insurance, registration, and roadside assistance plans are all deductible.
• Depreciation: Your car depreciates every year. Write that loss off!
• Tolls: Did you pay any tolls driving to your showing? Write them off.
• Parking: Did you stop by the office and have to pay for parking? Write that expense off, too.

Food Expenses

Did you have lunch with a client? Or maybe you just discussed work with a co-worker or friend over coffee. Great! You’ve got another write-off.

Home Office Expenses

If you do business from a dedicated home workspace, you’ve got a load of write-offs, including utilities, property insurance, part of your rent or mortgage, and any home office furniture you use.

Travel Expenses

Did you travel more than 100 miles for a client meeting? Maybe you even stopped along the way for dinner and a discussion about real estate. Good. You can write off all of those expenses.

Let the Experts Handle Your Taxes

Need tax planning assistance? Let our experts guide you through the process. Contact us today to get started!