7 Timely Tax Tips for Realtors

7 Timely Tax Tips for Realtors
  • Opening Intro -

    If you are a real estate agent, then there are several tax deductions you can take to reduce your tax burden.

    Expect to spend much time gathering receipts and reviewing your records as you assemble your tax return this year.


One in an occasional series of articles about your taxes.

1. Client gifts — You know that vintage California chardonnay you presented to your clients at closing last year? Well, those bottles of vino are deductible to a limit of $25 per bottle. Please review IRS Publication 463 to learn more about gift expenses.

2. Use of your car — Your personal vehicle when used for work purposes can give you an important tax deduction. You are allowed to deduct the miles you drove, currently at 55.5 cents per mile on your taxes. Alternatively, you can choose to deduct actual expenses including lease payments, maintenance and insurance.

3. Business entertainment — If you take your clients out to lunch, attend a seminar or host a class at your home, those expenses can be deducted. Be careful as these expenses must truly be related to your work warns the Upstart Agent.

4. Promotional costs — Getting your name out there comes with a cost. Those costs not paid by your real estate company can be deducted by you. These include the printing of business cards, ads you run in the local newspaper or online, flyers you have printed up and the cost of distribution, the cost incurred for developing and maintaining your website and USPS mailings you conduct.

5. Electronic devices — These days we own a number of electronic devices including laptops, cell phones and tablets. Those devices used exclusively for business can be deducted notes attorney Stephen Fishman writing for Inman News.

6. Insurance costs — Some of your regular insurance costs can be deducted as well. If you are self-employed, then your health insurance premiums and related medical expenses can be deducted. If you have liability insurance, rental insurance or business equipment insurance, then these can be deducted as well.

7. Various fees — If you manage your own office and are tied in with a real estate company such as ReMax or Coldwell Banker, then those franchise fees can be deducted. Also, the cost of securing your state’s real estate or broker’s license, your related education expenses not paid by your company and fees you pay to your local Chamber of Commerce are also tax deductible.

Some of the other expenses you can deduct including your bookkeeping costs, tax filing fees, contributions to a retirement plan, subscriptions to professional journals, wages and benefits paid to employees, and Internet access fees.

More Tax Information:

Home Office Income Tax Deductions

Income Taxes: Deducting Health Related Expenses

How to Fill Out IRS Form W-9


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Categories: Tax Tips

About Author

Matthew C. Keegan

Matt Keegan is a freelance writer and editor as well as publisher of "Matt's Musings", his personal blog. Matt covers campus, consumer, business and financial topics on various websites and blogs, and has been published in the "Houston Chronicle", "Sam's Club Magazine" and "Wisconsin Golfer".