Tax Deductions for Real Estate Agents

Tax time can be complicated for anyone. As a real estate agent, you may have found it particularly confusing when considering which deductions you can take. Here are a few tax deductions to consider before the next appointment with your accountant:

Marketing Deductions
A large part of your expense budget probably goes to marketing. Any paid advertising, promotional materials or expenses for signs can be deducted.

Equipment and Supplies Deductions
If you use a computer, a cell phone, a camera or office supplies only for business, you may deduct those things. If you use such items for both business and personal use, you will have to decide what percentage of time you use it for business and deduct only that part of the amount.

Further Education
If you enroll in classes or seminars to advance in skills that are required for your real estate business, you can deduct those expenses as well. This does not apply to the license exam you must take to be a real estate agent. You can also deduct informal educational materials such as a subscription to a professional journal.

Other Work-Related Deductions
As a real estate agent, you travel frequently, racking up the miles on your personal car. You can keep track of actual mileage you drive for work or determine what percentage of car expenses is directly related to business.

Gift, dining and entertaining expenses for a client can be deducted. However, you cannot deduct more than half of these types of expenses.

Of course, any fees paid (such as errors and omissions insurance or desk fees) are deductible. The expenses for real estate agents are varied, so be sure to check with your tax professional on anything about which you are unsure.