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
click here for IRS information
Here are 7 of the most commonly missed real estate tax deductions:
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Health Insurance
Self-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!
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Business Travel Expenses
Transportation, 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.
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Accountant Fees
Need professional help organizing your business taxes? No problem! Accountant fees are also tax-deductible.
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Electric & Internet
If you work out of your home, a percentage of your necessary utilities costs like your electricity, Internet and phone bills, are tax deductible.
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Homeowners Insurance
Another 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.
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Advertising
If you’re spending to advertise your business, you can deduct those costs. Deductions cover everything from newspaper ads to logo clothing.
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Professional Membership Dues
Do 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!
