Deductions to Consider when Filing Your Income Tax Returns

tax breaksMost real estate agents are consider self-employed! You invest your own money into building your business. So why not take advantage of the tax deductions you are entitled to?

I’m not an accountant, nor do I play one on TV, but here are some of the common deductions I found on the IRS website.

Here’s a link to the IRS website for more detailed information: www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Licensed-Real-Estate-Agents-Real-Estate-Tax-Tips.

Car Expenses – The cost of gas/fuel can add up. But you are also entitled to write off parking fees, tolls and maintenance expenses.

Office Supplies – You can write off office supplies that you use daily—copy paper, staples, binders. It all adds up.

Membership Dues – Your MLS , NAR and Chamber of Commerce membership fees are tax deductible.

Office Rents – If you are renting a space from your broker, it is an eligible write-off for you.

Office in the Home – Depreciation, Utilities, Mortgage Interest, Real Estate Taxes, Cleaning and Maintenance based on the percentage of space allocated in your home for your office space are all deductible.

Professional Fees – Did you hire professional stagers? How about accounting fees paid from last year’s tax filing? Did you pay for attorney fees or coaching? These are all deductible.

Online Marketing Fees – Buying new or updating real estate software used to generate business. Monthly fees paid to internet provider may also be deductible.

Training Classes – Not only can you write off the cost of the classes, but travel to and from the event, in addition to meal expenses, may also be deductible.

Networking Meetings – Yes, the fees to belong, including the cost of meals, are deductible.

Cell Phone/Telephone/iPad – Any device that you use to generate leads and interact with clients is another deduction you can take.

Gifts to Clients – There is a cap on the dollar amount you can deduct for gifts to clients, bit you can still write them off as an expense item.

What other deductions would you add to this list?

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