DISCLAIMER: We are not financial advisors, certified accountants, or lawyers. Please always consult with your own legal and tax professional.
1. COMMISSIONS PAID
Did you know that commissions you pay to other agents or employees that work with or under you are generally fully deductible business expenses? This is a deduction you should not overlook since commissions can add up quicklv!
2 & 3. HOME OFFICE + DESK FEES
Home-based businesses can use the home office deduction, except if deducting desk fees. Options include the regular or simplified method, with many favoring the latter. Your home office must be exclusively used for business, not personal areas like the bed or kitchen table. Whether you are hanging your license under a national franchise or with an independent broker, your desk fees are deductible.
4. EDUCATION + TRAINING
You may be able to deduct your registration fees, related materials, and certain travel costs.
5. MARKETING + ADVERTISING
Digital and online advertising expenses are increasingly dominant in spending, while costs like marketing materials and signage can be deductible through the IRSs advertising expense deduction, offering broad eligibility criteria and making it one Of the best deductions available.
6 & 7. HEALTH INSURANCE + AUTO
You can deduct health insurance premiums if not eligible for an employer-sponsored plan, and ensure real estate expenses are eligible for deduction, referring to RS Publication 535 and seeking expert advice. The standard auto deduction allows deducting every business mile, particularly beneficial for real estate professionals covering over 10,000 miles annually during activities like showings and listing presentations.
8 & 9. OFFICE SUPPLIES + BUSINESS TOOLS
You can fully deduct necessary business software, such as CRM for lead generation, along with expenses for products automating expense and mileage tracking. Furthermore, office-related expenses like stationery, photocopies, furniture, fax machines, computers, and telephone bills are also eligible for expensing or depreciation regardless of desk fees or home-office deductions.
10. FEES, LICENSES, MEMBERSHIPS & INSURANCE
Annual business fees like state license renewals, professional memberships, and MLS dues are deductible, excluding lobbying and political advocacy expenses within memberships. Additionally, general business insurance, errors and omissions insurance, and real estate taxes are fully deductible, along with half of self-employment taxes for self-employed individuals.
11 & 12 CLIENT GIFTS + MEALS
Annual business fees like state license renewals, professional memberships, and MLS dues are deductible, excluding lobbying and political advocacy expenses within memberships. Additionally, general business insurance, errors and omissions insurance, and real estate taxes are fully deductible, along with half of self-employment taxes for self-employed individuals.