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Top 6 Tax Deductions for Realtors

Posted by Kenneth Palmer

Feb 22, 2017 6:55:00 AM

Tax Refund - Orange Button on Computer Keyboard. Internet Concept..jpegI’m not sure about you, but this tax season I’m going to try to get the biggest return that I can. That’s why I’ve spent a good deal of time reading different blogs and thinking of different deductions that might be applicable to me. But what realtors? Surely there are some items that you can deduct that you might have overlooked in the past. Well, I’d like to discuss a few tax deductions for realtors that often go unnoticed.

Here are the top 6 ways realtors can maximize their tax deductions:

Home office -

If you do any work at home, this is an option worth looking into. The two qualifications for this are regular and exclusive use and principal place of business according to the IRS. If you use a room of your home exclusively for your business and use it quite often, this could be a great break for you.

Mileage/Gas -

It goes without saying that realtors do a ton of driving. If you’re using your personal car, you’re putting miles on YOUR engine. Why not get a little back for it? The IRS website states “the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be...54 cents per mile for business miles driven…”

Marketing/Advertising -

It doesn’t just have to be physical materials like business cards or flyers. Often times, your digital efforts such as video production or IT costs can also be deductible. The IRS mentions that if the business expense is ordinary and necessary, it can be deducted. Think about all those flyers...

Travel/Meals -

At some point in our professional careers, we get to go to conferences. Whether these are for professional development or just networking, if you spent personal money on food or other items, try to have them included. IRS tax codes state that you may deduct travel expenses if you’re out of your area for longer than what a normal day’s worth of work would be.

Software tools -

We all rely heavily on software platforms these days. Whether they are lead generating, customer relationship management (CRM), or operations organization, they can and should be deducted.  

Tax Preparation Fees -

This is one of my personal favorites because of how often it gets overlooked. The important thing to keep in mind, it is for the previous year’s filings. For example, The IRS notes that when you are filing this year for 2016, you can usually deduct the previous year's preparation fee.

 

As you look to invest money from future deductions into initiatives to move your business forward, ask yourself one question. What is the best way to spend this money? The best answer of course is to invest in assets that will make you more money. Though it seems like a simple concept, knowing how to make the most ROI can be tricky.


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Topics: Practical Advice

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