Most Common Tax Deductions for Real Estate Agents

Like all entrepreneurs, real estate agents want to ensure they maximize their income and minimize their tax burden. Fortunately there is a multitude of legitimate ways to reduce their taxable income. *

10 Great Tax Deductions for Real Estate Agents

1. Vehicle Deductions – Lease payments and mileage
2. Home Office – A home office that is used to conduct business can be deducted based on square footage.
3. Mobile Devices and Payment Plans – A dedicated cell phone, hot spot and mobile data plan costs can all be deducted.
4. Office Supplies – Paper, printer ink, pens, office furniture and upkeep of a home office.
5. Office Equipment – New printers, faxes, computers, laptops and tablets are just a few examples of deductible office equipment.
6. Marketing and Advertising Costs – Virtually all costs associated with marketing can be deducted; signage, postcards, balloons, staging, flyers.
7. Website Design and Maintenance
8. Membership Dues and Fees – MLS, Association fees and desk fees are all deductible.
9. Interest on Business Loans or Credit Cards – Starting and running a real estate business involves costs. Monthly costs associated with business debt interest can be deducted.
10. Insurance – Errors and Omissions insurance is deductible as long as the agent pays it directly from commissions, directly or as part of the desk fee.

*This article is not intended to give tax advice. Before making any financial decisions, please consult a licensed CPA who is qualified to give tax advice.