Real Estate | Tax Geaks

Realtors Tax Tips

Don’t Miss Out on

These Tax Deductions

Tax Tips for Real Estate Agents

by Tax Geaks
It’s that dreaded time of the year when we, as taxpayers, must file our annual tax returns. Many ask: “What is deductible?” and “What is not allowed as deductions?” Hopefully, this newsletter will clear up these questions and set you on the right path to reducing your tax liability as much as legally possible. Let’s look at allowable deductions:

ADVERTISING

AGENT IMPROVEMENT

• Books (Sales Books, RE Books, etc.)
• Continuing Education
• Magazine & Newsletter Subscriptions
• Sales Training/Coaching
• Seminars
• Textbooks/Reference Books
• Trade Publications

• Billboards
• Brochures/Flyers
• Business Cards
• Direct Mail/Post Cards
• Graphic Designer Fees
• Internet Ads (Google, Facebook, etc.)
• Leads/Mailing Lists
• Marketing Services
• Networking Event Costs
• Print Ads (Newspapers and Magazines)
• Promotional Materials
• Radio & Television Ads
• Signage/Banners
• Web Design
• Web Hosting and Domain Fees

AUTO

You have the option of either deducting your
business mileage at 55.5 ¢ per mile OR…
Auto Expenses
• Car Washes
• Depreciation/Lease Payments
• Gas
• Insurance
• Interest
• License/Registration
• Maintenance/Repairs
• Tires Both Methods can Deduct
• Car Washes
• Tires

BUSINESS TRAVEL

• Airfare
• Car Rental
• Dry Cleaning/Laundry
• Lodging
• Meals
• Parking/Tolls
• Taxi, Train, Subway, Bus
• Tips

HEALTH INSURANCE/HOMEOFFICE

RETIREMENT

• Insurance
• Mortgage Interest/Rent
• Property Taxes
• Repairs/Maintenance
• Security System
• Utilities

• Defined Benefit Plan
• Self Employment Pension (SEP)
• Simple IRA
• Solo 401k

BUSINESS COMMUNICATION

OFFICE EXPENSES

• Answering Services
• Cell Phone Service
• Fax Expenses/Efax
• Interactive Voice Response (IVR)
• Internet Service
• Office Telephone/VOIP
• Toll Free Number

• Clerical Support
• Family Wages (kids/spouses…really)
• Payroll/Unemployment Taxes
• Sales Assistant
• Virtual Assistant

EQUIPMENT

BUSINESS COMMUNICATION

• Briefcase
• Calculator
• Camera/Lenses
• Cellphone/Smartphone
• Cleaning Equipment (Vacuum Cleaner)
• Computer
• Equipment Repair
• Flashlight
• GPS
• Hard Drives/Thumb Drives
• Ipad/Tablet PC/Android
• Laptop
• Lock Boxes/Locksmiths/Keys
• Maps
• Printer
• Scanner
• Staging Items – Furniture
• Tape Measure
• Video Camera

• Desk Fees
• Client Refreshments (Coffee, Water, etc.)
• Copier Fees
• Janitorial Services
• Office Furniture
o Bookshelves
o Chairs
o Desks
o Filing Cabinets
• Office Supplies
o Envelopes
o Folders
o Paper
o Pens
o Postage
o Stationary
o Toner/Ink
• Office Rent
• Online Storage of Business Files
• Software

EMPLOYEE WAGES

• Clerical Support
• Family Wages (kids/spouses…really)
• Payroll/Unemployment Taxes
• Sales Assistant
• Virtual Assistant

SELLING EXPENSES

• Appraisal Fees
• CL100 Fees
• Client Gifts (<$25 per client)
• Closing Attorney Fees
• Concessions
• Courier Services/Delivery Fees
• Finder Fees/Referral Fees
• Home Repairs to sell listed property
• Home Warranty
• Inspection Fees
• Notary Fees
• Open House Expenses
• Photo Editing
• Staging Fees

START UP EXPENSES

• Including organizational costs
PLEASE NOTE: There are certain rules that
need to be taken into account in order to
legally write off some of these expenses.

PROFESSIONAL FEES

• Association Dues/Fees
o NAR
o NAIREB
o NAREB
o NAEBA
o CREA
• Bank Fees
• Bookkeeping Fees
• Business Licenses
• E & O Insurance
• Franchise/Affiliation Fees
• Legal Fees
• MLS Fees
• Tax Prep Fees