Disclaimer: This blog post was created to provide information on possible deductions. Always consult your tax professional when filing.
It’s tax season – and you know what that means… time to organize all those receipts and make sure you’re maximizing your deductions. As a real estate business owner, you have the opportunity to claim dozens of items as business expenses.
Rule of thumb: to qualify as a deduction, your expense must meet these three criteria:
- It must be ordinary and necessary
- It must be directly related to your business
- It must be reasonable in amount
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Here are 7 of the most commonly missed real estate tax deductions:
Health InsuranceSelf-employed individuals qualify for health insurance premium deductions. With the recent changes in health care, this can be a huge asset to small business owners. Make sure you take advantage!
Business Travel ExpensesTransportation, lodging and conference fees for business travel all qualify as deductions. You can also deduct 50% of your meals. When you're home, use the Mile IQ app to track your own mileage for deductions.
Accountant FeesNeed professional help organizing your business taxes? No problem! Accountant fees are also tax-deductible.
Electric & InternetIf you work out of your home, a percentage of your necessary utilities costs like your electricity, Internet and phone bills, are tax deductible.
Homeowners InsuranceAnother work-from-home perk is the ability to deduct a portion of your homeowners insurance. If you live in a managed community, you can also deduct a portion of your HOA fees.
AdvertisingIf you’re spending to advertise your business, you can deduct those costs. Deductions cover everything from newspaper ads to logo clothing.
Professional Membership DuesDo you belong to The National Association of Realtors® or other professional organizations? Your membership dues are… you guessed it, tax deductible.
Pro Tip: Software Savings
Know what else you can deduct? Real estate software!
Learn more about our affordable, effective lead conversion software.
I hope this list helps you find some valuable tax savings this year!