![]() Gifts ($25 deduction limit per client per year), entertainment, and other costs you incur to please clients and keep them coming back to you for their real estate needs.Home office expenses, whether you rent or own your home.Travel airfare, lodging, and meals for real estate education and business purposes.Transportation expenses including automobile maintenance and repairs, gas, mileage, auto insurance, parking and new car purchase or lease costs.Real estate association dues, multiple listing service (MLS) dues and brokerage desk fees.Real estate coaching, training, and education costs.Marketing expenses such as sales and open house signs and flyers, your website development and maintenance, and business cards and mailers.Here are some of the most common real estate agent and broker deductions: Even minor costs can be deducted, and they don't have to be critical to your business to count. Take advantage of every tax deduction you can. ![]() ![]() Keep the receipts for depreciating items for as long as you own them and then for a few more years.Īllowable tax deductions you need to know For example, property that depreciates, such as the car you use to show homes, office equipment, and your office furniture, is usually deducted over time rather than right away. Certain documents need to be kept for several years. Set up a basic filing system to organize your paper receipts and income documents, such as checks and credit card statements. Or try the QuickBooks self-employed app for Android or iPhone, which can help you track your mileage and expenses while on the go. A few tools, like TurboTax Self Employed, can help you keep good tax records. Most of these costs are tax deductible and should be documented throughout the year. Normally, you have to market a property before you can sell it, promote yourself to attract homebuyers and sellers, and drive around town quite a bit before you see the fruits of your labor in the form of a commission check. As a real estate agent or broker, you usually must invest money before you make money.
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