What Can You Write Off as a Real Estate Agent?

You may or may not use all these things as a real estate agent, but here are the most common items you can write off on your taxes. 

1. Home Office 

If you decide to make a designated office in your home, you can write that off on your taxes. You have to use this space exclusively for work purposes and use it regularly. The most common way to calculate how much you can deduct is through the simplified method. This means you can deduct $5 per square foot for up to 300 feet. 

2. Office Equipment

Equipment such as printers, stationery supplies, furniture, computers, phones, etc. can all be deducted from your taxes if they serve a business purpose. If you use your personal phone for work purposes, you can deduct part of that service from your taxes. 

3. Ongoing Education

If you want to take courses to further your education and knowledge of real estate, you may be eligible for a tax deduction. It must be directly related to real estate and go beyond the required skills and certifications needed for the job. You may be able to write off expenses such as traveling and registration fees. 

4. Meals and Travel 

Whether you are out with another business professional or eating on a business trip, you can deduct this expense from your taxes. If you are dining out with a client or other professional, you must be conducting work or business items. 

You are also able to deduct traveling expenses for business trips such as airfare, accommodations, mileage, or other transportation expenses. 

5. Commissions

One item that is often overlooked as a tax deduction is commissions. Whatever amount of commission that is received by other agents can be deducted. 

6. Marketing 

Marketing materials are an essential part of growing your business but can be a large portion of your budget. Luckily, much of these materials can be written off. This can include brochures, flyers, business cards, website software, etc. 

7. Desk Fees

If you as a real estate agent work under a brokerage firm, you can write off items such as desk space, transaction fees, and admin support. However, if you claim this as your primary workspace, you cannot deduct any in-home office expenses. 

8. Insurance and Licensing Fees

Fees related to insurance and licensing renewal can be deducted since they are associated with your real estate business. 

9. Gifts

If you give any gifts to clients that are under $25, they are eligible for tax deduction. You must have a record showing that the gift was used for that sole purpose. 

Find Guidance Through Cooper Norman

Every real estate agent operates differently. These are the most common items you can deduct, but they may differ depending on your specific practice. Our tax professionals can work with you to ensure you are writing off all the right things as a real estate agent. Contact Cooper Norman today to maximize your income.