Even the savviest of real estate agents can miss out through money-saving tax deductions. Many don't even know or understand just how much money they can save. You can quickly figure out how much you can save if you add up your total savings in federal and state taxes plus self-employment taxes.
Your first step is to determine what you can write off. We've outlined some quick tips to make sure you get every deduction you're entitled to as a real estate agent. So, when employed by a real estate agent like Reali, what are some of the most important financial points to keep in mind? Well, our advice is always to consult with your accountant because there are rules the IRS expects you to follow when taking these deductions. Alternatively you can schedule a free 15 minute consultation with our tax specialist, click here.
Marketing & Advertising
This includes any and all promotional material:
Anything you do to that helps you become a better agent:
Professional and Business Fees
As a real estate professional, there are a number of organizations you are required to join or that you use for networking that you can deduct as well:
There are two methods for deducting car expenses. You can either deduct your business mileage at 55.5 cents per mile (you can deduct tires and car washes when you take mileage) or you can keep receipts for all of your vehicle-related expenses:
Business Travel Expenses
When it's a Business Trip basically everything is tax deductible including everything below:
It's best to double-check with your accountant or schedule a free 15 minute consultation call with Empire Tax Professionals to help you determine if your home office expenses are deductible, such as:
Everything you use to help you with your business is tax deductible, including the repairs for the equipment and:
Health/Liability Insurance & Retirement
Any payments for health insurance are deductible, as well as your retirement expenses:
Make sure you maximize your deductions for employees such as:
Fees that you incur as a result of selling a property are also deductible:
If you are just starting out, make sure to deduct all fees above and anything else relating to your organizational start-up costs.
Disclaimer: Empire Tax Professional's blog is a source for informational purposes of industry news and related topics. We make every effort to provide accurate and honest tax information, however this information is not a substitute for professional tax advice. Please schedule a 15 minute consultation with us here.