This is a list of possible income tax deductions available to real estate agents. Be sure to review with a tax professional to ensure that these deductions apply to your tax situation.
Advertising
- Billboard, Brochures/Flyers, Business Cards, Copy Editor Fees, Direct Mail
- Email Marketing/Newsletters, Graphic Designer Fees
- Internet Ads (Facebook/Google/etc.), Leads/Mailing Lists
- Marketing Services, Networking Event Costs, Postcards
- Print Ads: Newspapers/Magazine, Promotional Materials
- Radio Ads, Signage/Banners, Television Ads, Web Design
- Web Hosting & Domain Fees
Agent Improvement
- Books (Sales Books, RE Books, etc.), Continuing Education
- Magazine Subscriptions, Newsletter Subscriptions, Sales Training/Coaching Seminars, Textbooks/Reference Books, Trade Publications
Auto
Business Mileage (55 1/2₵ /mile) or Actual Auto Expenses
- Car Washes
- Depreciation/Lease Payments
- Gas
- Insurance
- Interest
- Licenses/Registration
- Maintenance
- Repairs
- Tires
Both methods can deduct
- Parking
- Tolls
Business Travel
- Airfare, Car Rental
- Dry Cleaning/Laundry, Lodging
- Meals, Parking/Tolls
- Taxi, Train, Subway, Bus Tips
Business Meals, business Entertainment, Communication
- Answering Services, Cell Phone Service, Fax Expenses/eFax
- Interactive Voice Response (IVR), Internet Service
- Office Telephone/VOIP
- Pagers (for those of you that still have one!)
- Toll-Free Number
Equipment
- Briefcase, Calculator, Camera/Lenses
- Cell Phone/Smart Phone, Cleaning Equipment (Vacuum), Computer
- Equipment Repair, Flashlight
- GPS
- Hard Drives/Thumb Drives, iPad/Tablet PC/Android Laptop
- Lock Boxes/Locksmiths/Keys, Maps
- Printer, Scanner
- Staging Items: Furniture, Tape Measure
- Video Camera
Employee Wages
- Clerical Support
- Family Members (Kids/Spouse) Payroll/Unemployment Taxes, Sales Assistant
- Virtual Assistant
Health Insurance Home Office
- Insurance
- Mortgage Interest/Rent, Property Taxes, Repairs/Maintenance, Security System Utilities
Office Expenses
Desk Fees
- Client Refreshments (coffee, water, soda), Copier Fees
- Janitorial Expenses, Office Furniture
- Online Storage of Business Files, Software Bookshelves
- Chair
- Desk
- Filing Cabinets, Office Supplies
- Envelopes
- Folders
- Paper
- Pens
- Postage
- Stationary
- Toner/Ink Office Rent
Professional Fees
Association Dues/Fees
- NAR
- NAIREB
- NAREB
- NAEBA
- CREA
- Chamber of Commerce, Bank Fees
- Bookkeeping Fees, Business Licenses, E&O Insurance
- Franchise/Affiliation Fees, Interest on Business Purchases, Legal Fees
- MLS Fees
- Tax Prep Fees
Retirement
- Defined Benefit Plan
- Self-Employment Pension (SEP), Simple IRA
- Solo 401k
Selling Expenses
- Appraisal Fees, CL100 Fees
- Client Gifts (<$25 per client), Closing Attorney Fees, Concessions
- Courier Services/Delivery Fees, Finder Fees/Referral Fees
- Home Repairs to sell listed property, Home Warranty
- Inspection Fees, Notary Fees
- Open House Expenses, Photo Editing
- Staging Fees
Startup Expenses
- Costs incurred before going into business. Also includes organizational costs.
***Use this checklist as a starting point for gathering your deductible expenses. Please note that there are certain rules that need to be taken into account in order to legally write off some of these expenses.
