I have 102 tax deductions that I’m stoked to share with you, so let’s get right into it…
Make sure you stick around all the way to the very end because I’ve also included this information as a pdf with bonus fun facts that will make you more informed about what’s deductible.
First off, let’s answer the question, “is it deductible?”
An expense must be ORDINARY and NECESSARY to your business in order to be deductible.
The IRS says, “An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your trade or business.” NOTICE the keyword “helpful” – an example could be… your business might be able to operate without you going to your agency’s retreat, but going could still be helpful to your business.
102 Tax Deductions for Real Estate Agents
BUYING & SELLING – Expenses related to helping your clients sell or purchase a property:
1. Signage for your listing
2. Transaction and closing costs
3. Staging costs
4. Snacks for open houses
5. Real estate photography
6. Document signing software
7. Errors and omissions insurance
GETTING AROUND – Expenses for getting from place to place:
8. Repairs & Maintenance
9. Car washes
10. Fuel
11. Tolls
12. Milage
13. Parking passes
14. Lease payments
15. Memberships like AAA
16. Depreciation
17. Auto Insurance
18. Licensing and registration fees
RUNNING YOUR BUSINESS LIKE A PRO – Expenses for professional tools and development:
19. Business licenses
20. Association memberships
21. MLS fees
22. Lockbox expense
23. Conferences & Seminars
24. Trainings
25. Industry publications
26. Continuing education courses
27. License renewal
28. Books or audio books
29. Podcast subscriptions
30. Monthly banking service charges
31. Payment processing fees
32. ACH transfer or wire fees
33. Account set up fees
34. Business related credit card interest
35. Business liability insurance
GENERATING LEADS – Expenses for finding new clients:
36. Business cards
37. Call center services
38. Automated marketing software
39. Sponsor other people’s events
40. Promotional materials
41. Printed flyers
GETTING ONLINE – Expenses related to getting out there on the internet:
42. Social media ad spends
43 Subscriptions to software like Canva or other payed platforms that you use to produce marketing content
44. Logo or brand development
45. Custom templates
46. Your headshots
47. Your computer
48. Your printer
49. Your cellphone
50. Your headphones
51. Internet
52. Wi-Fi Routers and extenders
53. Contracted SEO services or SaaS
54. Web hosting
55. URLs
56. Email services like GSuite
57. Automated email platforms
58. Audio or video equipment for making your own content
WORKING FROM YOUR HOME OFFICE – Expenses related to a home office:
59. Renter’s insurance or home insurance
60. Home utilities (if you rent or own)
61. Real estate taxes (if you own)
62. Mortgage interest (if you own)
63. Rent (if you rent)
64. Furniture for your home office (if you rent or own)
WORKING FROM YOUR OFFICE OFFICE – Expenses related to working from an office:
65. Office rental
66. Repairs and maintenance to your office
67. Office utilities
68. Desk Fees
69. Office supplies
70. Cleaning services (or cleaning products if you are cleaning the office yourself)
71. Postage
72.Stationary
BUILDING YOUR TEAM – Expenses related to your support team:
73.Commission based payments to other agents or employees
74. Your virtual assistant
75. Your in-person assistant
76. Your accountant
77. Bookkeeper
78. Your lawyer
79. Your web designer
80. Employee training expenses
81. Employee year end bonuses
82. Uniforms
83. Tax preparation services
84. Consulting or coaching fees
85. Payments to other agents who show your listings
86. Payroll software
87. Accounting software
CONNECTING WITH THE PEOPLE – Expenses related to building your current client relationships:
88. Expenses related to events that you host
89. Gifting service platforms
90. Charitable contributions
91. Client gifts (up to $25 per client)
92. Marketing fees paid to your broker
93. Breakfast, Lunch, Dinner with clients
94. Coffee with clients
95. CRM software
HITTING THE ROAD – Expenses for business related travel:
96. Airline tickets
97. Lodging costs
98. Rental car expenses
99. Meals while traveling
100. Baggage fees
101. Dry cleaning
102. Tips while traveling
If you’re a real estate agent, these deductions likely apply to you! Make sure you as about these deductions when you talk with your tax professional to better understand what applies to your specific situation or let’s connect if you’d like more clarity regarding your bookkeeping.