31 Tax Write-Offs for Real Estate Agents
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.
Schedule C, Box 27a
Any dues, fees, or subscriptions for a realtor's association or the MLS can be deducted.
Schedule C, Box 8
Marketing materials like postcards, property signs, and even ads can be written off.
Schedule C, Box 27a
Coaching, seminars, or workshops used to maintain your work-related skills can be written off.
Schedule C, Box 8
Squarespace, Wix, GoDaddy, and other website service fees are fully tax-deductible.
Schedule C, Box 17
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.
Schedule C, Box 10
Commissions you pay to employees or other agents are fully deductible business expenses.
Schedule C, Box 10
The fee you pay to rent a desk at your broker's office or a coworking space is tax deductible.
Schedule C, Box 15
Errors and Omissions insurance is required for all real estate agents and is deductible.
Schedule C, Box 18
Software for CRM, lead generation, or email marketing is a write-off.
Schedule C, Box 8
Business cards with your contact information count as advertising expenses.
Schedule C, Box 18
Deduct anything you buy for your office, like pens, binders, folders, printer ink, or a whiteboard.
Schedule C, Box 27a
If you use your phone for work (who doesn't?), then a part of your phone bill is tax-deductible.
Schedule C, Box 8
Print and online advertising costs for your business are considered write-offs.
Schedule C, Box 11
If you need to hire an editor, designer, photographer, or other creative pro, write off what you pay them.
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Get startedReal 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.
Schedule C, Box 27a
Parking for a meeting downtown, or any other work trip, is tax-deductible!
Schedule C, Box 27a
A toll while driving to or from a work destination is tax-deductible!
Schedule C, Box 13
If you buy a new car, you can write off part of the cost every year for five years.
Schedule C, Box 22
Flashlights, tire iron, duct tape, and other tools you may need in your vehicle are deductible.
Schedule C, Box 15
Car insurance monthly fees, registration, even roadside assistance are partially deductible.
Schedule C, Box 9
Oil changes, repairs, and regular checkups are all tax-deductible if you drive for work.
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.
Schedule C, Box 24b
If you discuss work with a coworker, mentor, client, or prospective client, it's a write-off!
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.
Schedule C, Box 24a
Planes, trains, and car rentals are all work-related travel costs that can be written off.
Schedule C, Box 24a
When you travel for work, lodging expenses such as hotel rooms or Airbnb are write offs.
Schedule C, Box 24a
When you're traveling for work, all meals are tax-deductible. Even takeout!
When you're not busy showing other peoples' 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!
Schedule C, Box 18
A desk, chairs, lamps, and other home office necessities are all tax write-offs.
Schedule C, Box 21
You can write off up to $2,500 for individual repairs to your property.
Form 8829
Gotta keep the lights on in your home office! A portion of your electricity bill counts.
Form 8829
Whether it's rental or homeowners insurance, you can write off a portion through your home office deduction.
Form 8829
It'd be hard to work in an office without running water, huh? You water bill counts.
Schedule C, Box 25
Your Comcast bill is a tax write-off. You need internet to do your job!
