Real Estate Agent Tax Deductions Worksheet: What to Include

Do you know what to include in your real estate agent tax deductions worksheet? As a real estate agent, tax season can be a stressful time. With the ever-changing tax laws, it can be difficult to keep track of what expenses are deductible. However, keeping a tax deductions worksheet can make the process easier and ensure that you are maximizing your deductions.

Here are some expenses that real estate agents should consider adding to their tax deductions worksheet and have reviewed by their licensed tax professional:

Disclaimer: This article is for informational purposes only and should not be used as a substitute for professional tax advice.

Real Estate Agent Tax Deductions Worksheet: Items to Consider

Advertising Expenses

As a real estate agent, advertising is an essential part of your business. Some advertising expenses that may be deductible include billboards, brochures/flyers, business cards, direct mail, email marketing, graphic designer fees, internet ads (Google, Facebook, etc.), marketing services, networking event costs, postcards, print ads (newspapers & magazines), promotional materials, radio ads, signage/banners, television ads, web design, and web hosting/domain fees.

Auto Expenses

If you use your car for business purposes, you may be able to deduct certain auto expenses. Some auto expenses that may be deductible include car washes, depreciation or lease payments, gas, insurance, interest, license and registration, repairs and maintenance, and tires.

Business Travel

Real estate agents may incur expenses related to business travel. Some business travel expenses that may be deductible include airfare, car rental, dry cleaning and laundry, lodging, meals, parking and tolls, taxi, train, subway, bus, Uber, Lyft, and tips.

Communications

Real estate agents rely on various forms of communication to conduct business. Some communication expenses that may be deductible include answering services, cell phone service, fax and eFax expense, interactive voice response (IVR), internet services, office telephone and VoIP, and toll-free numbers.

Education Expenses

Continuing education is important for real estate agents to keep up with industry trends and regulations. Some education expenses that may be deductible include books, continuing education, magazine subscriptions, newsletter subscriptions, sales training/coaching, seminars, textbooks/reference books, and trade publications.

Equipment Expenses

Real estate agents rely on various equipment to conduct business. Some equipment expenses that may be deductible include briefcases, calculators, cameras and lenses, cell phones, cleaning equipment, computers, equipment repair, flashlights, GPS, hard drives and thumb drives, iPad/tablet/android, laptop/desktop, lockboxes/locksmiths/keys, maps, printers, scanners, and staging items-furniture.

Employee Wages

If you hire employees to assist with your real estate business, you may be able to deduct certain employee wage expenses. Some employee wage expenses that may be deductible include clerical support, payroll and unemployment taxes, payroll processing fees, and sales assistance.

Home Office Expenses

If you have a home office, you may be able to deduct certain expenses related to your home office. Some home office expenses that may be deductible include home office, insurance, mortgage interest/rent, property taxes, repairs and maintenance, security systems, and utilities.

Insurance Expenses

Real estate agents require various types of insurance to protect themselves and their clients. Some insurance expenses that may be deductible include E&O insurance, liability insurance, auto insurance, umbrella policies, and medical insurance.

Office Expenses

Real estate agents require various office supplies to conduct business. Some office expenses that may be deductible include desk fees, client refreshments, copier fees, janitorial services, office furniture (bookshelves, chairs, desks, filing cabinets, etc.), office supplies (envelopes, folders, paper, pens, postage, stationery, toner/ink), office rent, and online storage of business files, and business software.

Professional Fees

Real estate agents require various professional services to conduct business. Some professional fees that may be deductible include association dues/fees (NAR, NAIREB, NAREB, NAERE, etc.), business entity fees, legal fees, marketing consulting fees, professional development fees, and tax preparation fees.

Conclusion

As a real estate agent, tax season can be overwhelming, but it doesn’t have to be. By keeping a tax deductions worksheet and tracking your expenses throughout the year, you can ensure that you are maximizing your deductions and reducing your tax liability. The expenses listed above are just some of the many deductions that may be available to real estate agents. It is essential to consult with a tax professional to ensure that you are taking advantage of all available deductions and complying with the ever-changing tax laws. With careful planning and organization, tax season can be a stress-free time for real estate agents.