35 Tax Write-Offs for Real Estate Agents
NAICS business codeYour NAICS business code is a six-digit string of numbers that shows the type of work your business does. NAICS stands for North American Industry Classification System. When you do your taxes, you'll enter it in Box B of your Schedule C.531210
Reviewed bySabrina Wiechart, CPASabrina is a Certified Public Accountant (CPA) with over 15 years of experience in tax preparation, planning, and S-Corp compliance. She holds a Master’s in Accounting and specializes in helping self-employed individuals make smart tax decisions. Sabrina is passionate about simplifying the S-Corp process and making sure every client keeps more of what they earn.You've likely heard the saying: "You need to spend money to make money." This tends to especially apply to real estate agents, who often need to invest a fair chunk of money into their business upfront to attract clients. For instance, paying for social media ads to promote your services, offering bonuses to prospective clients like complimentary home staging, or paying for leads from sites like Zillow.
The good news is, these expenses can be written off on your taxes because they're necessary to your business. And they're not the only ones! Keep scrolling for our list of common write-offs for real estate agents.
Any dues, fees, or subscriptions for a realtor's association or the MLS can be deducted.
The share of your dues that goes toward lobbying isn't deductible — your organization can tell you what percentage that is.
Marketing materials like postcards, property signs, and even ads can be written off.
Coaching, seminars, or workshops used to maintain your work-related skills can be written off.
This covers training that maintains or improves skills for the work you already do. Courses that qualify you for a new trade or profession are not deductible.
Squarespace, Wix, GoDaddy, and other website service fees are fully tax-deductible.
Legal fees paid to set up your business or draw up paperwork are deductible.
Your state license renewal, MLS dues, and professional memberships are deductible.
Commissions you pay to employees or other agents are fully deductible business expenses.
The fee you pay to rent a desk at your broker's office or a coworking space is tax-deductible.
Errors and Omissions insurance is required for all real estate agents and is deductible.
Software for CRM, lead generation, or email marketing is a write-off.
Business cards with your contact information count as advertising expenses.
Deduct anything you buy for your office, like pens, binders, folders, printer ink, or a whiteboard.
If you use your phone for work (who doesn't?), then a part of your phone bill is tax-deductible.
Print and online advertising costs for your business are considered write-offs.
If you need to hire an editor, designer, photographer, or other creative pro, write off what you pay them.
Pay any one contractor $600 or more in a year and you'll need to file a Form 1099-NEC for them.
Any food, decor, or items you to stage a property for an open house can be written off.
Client appreciation gifts up to $25 for holidays and settlement closings are write-offs.
Software you use to analyze your investments or the real estate market can be written off.
Commissions and fees you pay to your broker on real estate transactions are tax-deductible.
Paying Zillow Premier Agent, Realtor.com or a similar platform for leads is an advertising write-off.
Staging a listing is deductible. If you hire a stager as a contractor rather than buying the staging yourself, it belongs on Box 11 instead.
Classes you take to enhance your skills after getting your license are tax write-offs.
This covers training that maintains or improves skills for the work you already do. Courses that qualify you for a new trade or profession are not deductible.
If you drive for work ...
Real estate agents spend a lot of their time zipping around town — to meet clients, drop by showings or open houses, or set up "for sale" signs. Luckily, you can write off car-related expenses like maintenance and gas.
Parking for a meeting downtown, or any other work trip, is tax-deductible!
A toll while driving to or from a work destination is tax-deductible!
If you buy a new car, you can write off part of the cost every year for five years.
Flashlights, tire iron, duct tape, and other tools you may need in your vehicle are deductible.
Car insurance monthly fees, registration, even roadside assistance are partially deductible — if you use the actual expense method. The standard mileage rate already covers them.
Oil changes, repairs, and regular checkups are deductible if you use the actual expense method. Take the standard mileage rate instead and they're already baked into your per-mile deduction.
If you discuss work at a restaurant ...
Networking is a core practice of a successful real estate agent. You likely often meet clients or fellow agents at restaurants to chat about current or upcoming listings. When you do, remember to write off your business meal expenses.
If you discuss work with a coworker, mentor, client, or prospective client, it's a write-off — 50% of the tab.
If you leave town for work ...
Meeting an out-of-town client or attending a real estate conference or networking event are both reasons an agent might travel for work. They also count as business trips, so you can write off your travel costs.
Planes, trains, and car rentals are all work-related travel costs that can be written off.
When you travel for work, lodging expenses such as hotel rooms or Airbnb are write-offs.
When you're traveling for work, your meals are 50% deductible — takeout included. (Long-haul truck drivers subject to DOT hours-of-service rules can deduct 80%.)
If you work from home ...
When you're not busy showing other people's homes, you might spend your time working from your home, on things like lead generation, phone calls with clients, writing listings, and coming up with marketing strategies. In this case, don't forget to write off your home office expenses!
A desk, chairs, lamps, and other home office necessities are all tax write-offs. Anything over about $2,500 gets depreciated on Form 4562 instead of written off all at once.
Repairs just for your home office are 100% deductible. Repairs to the rest of your home count too, prorated by your business-use percentage on Form 8829.
Gotta keep the lights on in your home office! A portion of your electricity bill counts.
Whether it's rental or homeowners insurance, you can write off a portion through your home office deduction.
It'd be hard to work in an office without running water, huh? Your water bill counts.
You need internet to do your job! If you claim a home office, deduct it prorated on Form 8829 along with your other utilities. Internet you pay for on the road, purely for work, is 100% deductible.
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