Real Estate Agent Tax Deductions
Maximizing your tax deductions as a real estate broker or agent is not solely about finding things to deduct. While that is a large part of it, also involved is being knowledgeable about what is deductible AND then tracking said deductions. I mean, if you fail to track what you can deduct, then how can you actually deduct it? Sure, you can estimate or even make it up. But guess what? That is a sure-fire way to have the IRS disallow the expense if they decide to audit your return.
To ensure that you don’t miss any business related expenses paid for during the tax year, it’s recommended that one use a tax organizer. Feel free to use our handy dandy tax organizer (checklist) as a starting point.
From there, make sure that you aren’t forgetting any of the expenses typically deducted by those in your profession. What are those? While this list is not entirely inclusive or comprehensive, it does cover most of the major items:
Advertising
- Billboards
- Brochures/Flyers
- Business Cards
- Copy Editor Fees
- Direct Mail
- Email Marketing and Newsletters
- Internet Ads (Google, Facebook, etc.)
- Leads/Mailing Lists
- Post Cards
- Print Ads (Newspapers and Magazines)
- Promotional Materials
- Signage/Banners
- Web Hosting and Domain Fees
Auto Expenses
- Car Washes
- Gas
- Insurance
- Interest
- License/Registration
- Maintenance
- Repairs
- Tires
Business Travel
- Airfare
- Car Rental
- Lodging
- Meals
- Parking/Tolls
- Taxi, Train, Subway, Bus
Communication
- Answering Services
- Cell Phone Service
- Fax Expenses/eFax
- Internet Service
- Office Telephone/VOIP
Equipment
- Camera/Lenses
- Cellphone/Smartphone
- Cleaning Equipment
- Computer
- Hard Drives/Thumb Drives
- iPad/Tablet PC/Android
- Laptop
- Lock Boxes/Locksmiths/Keys
- Printer
- Scanner
Employee Wages
- Clerical Support
- Family Wages (e.g. kids/spouses)
- Payroll/Unemployment Taxes
- Sales Assistant
- Virtual Assistant
Office Expenses
- Desk Fees
- Client Refreshments (Coffee, Water, etc.)
- Copier Fees
- Janitorial Services
- Office Furniture
- Office Supplies
- Office Rent
- Online Storage of Business Files
- Software
Professional Fees
- Association Dues/Fees
- Chamber of Commerce
- Bookkeeping Fees
- Business Licenses
- E & O Insurance
- Franchise/Affiliation Fees
- Legal Fees
- MLS Fees
- Tax Prep Fees
Retirement
- Defined Benefit Plan
- Simplified Employee Pension (SEP)
- Simple IRA
- Solo 401k
Training & Improvement
- Books (Sales Books, Real Estate Books, etc.)
- Continuing Education
- Newsletter Subscriptions
- Sales Training/Coaching
- Seminars
Looking for more ways to save on taxes?
Jared’s latest book, The Real Estate Brokers Little Black Tax Book is chock full of tips and strategies to help you cut your tax bill. Sure, you can buy it by clicking the book image at the top of this page, BUT, if you head over to this super secret page, you can get some free goodies. Like see a video where Jared discusses the book and get the free white paper, The 10 Tax Issues Broker Face. So what are you waiting for? The sooner you take action, the sooner you can keep more of your hard earned commissions in YOUR pocket and out of the hands of Uncle Sam!