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 bya tax professionalThis content has been reviewed by an Enrolled Agent (EA) with the IRS — the highest credential awarded by the agency. Enrolled Agents are empowered to represent all taxpayers before the IRS, on all types of tax-related matters. Accountants who earn this certification have passed a comprehensive three-part exam on individual and business tax returns. To maintain EA status, they must stay up to date in the field by completing 72 hours of continuing education every three years.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.
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.
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.
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.
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.
Oil changes, repairs, and regular checkups are all tax-deductible if you drive for work.
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!
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, all meals are tax-deductible. Even takeout!
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.
You can write off up to $2,500 for individual repairs to your property.
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.
Your Comcast bill is a tax write-off. You need internet to do your job!
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