25 Deductions for Real Estate Agents

No one wants to pay more tax than they have to.  With tax season is just around the corner, Tax In-House has put together a list of 25 deductions that every real estate agent needs to confirm they are claiming.

In general, an agent can deduct any business expense that is (1) ordinary and necessary; (2) directly related to your business; and (3) reasonable in amount.  The following common deductions meet this criteria:

  1. advertising expenses, including websites, mailing lists, newspaper advertising, fliers, online advertising, postcards, promotional materials, logo clothing, and anything else you pay for to market your real estate business;
  2. professional fees (bookkeeping, accounting,  legal);
  3. business gifts (up to $25 per gift);
  4. business meals and entertainment (50% deductible);
  5. business travel;
  6. car and truck expenses, including depreciation, insurance, interest on car loans, lease payments, license plate fees, parking expenses, and tolls (limited by percent of business use) OR business mileage;
  7. land line & cell phone;
  8. computer software;
  9. computers;
  10. desk fees;
  11. education to maintain or improve required skills;
  12. home office expenses (if you qualify);
  13. insurance, including health insurance, errors and omissions insurance, business liability insurance, and business equipment insurance;
  14. interest, such as interest for business loans, interest paid on business credit cards;
  15. Internet access fees;
  16. desk rent;
  17. office equipment (cost may be deducted in one year using bonus depreciation or IRC Section 179);
  18. office expenses, including rent, cleaning and maintenance, and utilities;
  19. office supplies;
  20. postage;
  21. professional dues and fees — for example, multiple listing service dues and dues paid to the local Chamber of Commerce, Realtor associations, and real estate license renewal fees;
  22. referral fees and commission rebates;
  23. retirement plan contributions;
  24. subscriptions to professional journals;
  25. real estate franchise fees;taxes, including payroll taxes for employees, state and local business taxes;

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