AGENTS & TAXES
Hire A CPA
Hiring a CPA is worth the financial cost. A good CPA will save you time and money. You will not have to worry as much about missed items or items being done incorrectly. Keep up with all receipts, statements and bills to help your CPA more easily maximize your deductions. Make an effort to get a system in place so that you don’t feel overwhelmed at tax time. It’s worth it to make the hard effort upfront instead of when in a crunch at tax time.
It is important to always consult with your CPA before filing your taxes and use only his or her advice. Below are a few tax deduction ideas that real estate agents can discuss with his or her CPA.
Automobile & Transportation: Car Washes, parking fees, registration fees and taxes, vehicle loan interest, tolls - My CPA suggests that I use the Standard Mileage Deduction, which is a simple method where you take a cost per mileage driven for business. Your CPA can walk you through the best option for your vehicle deduction.
Commercial Office Space Rent
Contract Workers: Admin, Bookkeeper, Payroll, Showing Assistant, Virtual Assistant, Social Media Content person, Babysitters
Education and Training: Books, coaching, classes, travel for that training
Equipment Expenses: Be sure to check with your CPA if these items should be deducted or depreciated. Calculator, camera, cleaning supplies, cloud storage, computer, GPS, hard drive, keys, lock boxes, measuring tool, phone, printer, scanner, staging items, tablet, light ring, computer or equipment repairs
Flyers used for marketing or open houses
Gifts: The IRS allows real estate agents $25 to spend on client gifts. If you add your branding to the gift, the gift then becomes a marketing material and has different requirements. Check your state’s laws on real estate gifts and marketing.
Home Office: Insurance, maintenance, mortgage interest, property taxes, rent, repairs, security system, utilities - Consult with your CPA about if you can deduct your home office if you are a part-time agent and also have a full-time salaried job.
Insurance: Auto, E&O (if not included with your brokerage), health
Internet Domain and Website Host
Interest from a Line Of Credit
Legal or Professional Services: CPA fees, lawyer fees
Licenses, Brokerage Fees and Dues
Marketing Expenses: Business cards, direct mail, flyers, open house signs, social media ads, website development and maintenance
Meals (50%): Document with whom you ate the meal and what you discussed.
Office Supplies including everything from pens to furniture
Physical Office: Internet, rent, renter’s insurance, phone service, utilities
Post Card or Door Hanger distributers
Rental Property Losses
Retirement Plan Contribution
Self-Employed Health Insurance
Services & Fees: Bank fees, bookkeeping, interest, internet, subscriptions, phone
Signs: Listing, Open House
Software: CRM, Quickbooks, etc.
Social Media Ads or content
Staging Fees paid for by you on a listing
Travel: Airfare, hotels
Unusual Items: Appraisal, closing attorney fee, concessions, delivery fee, home warranty, notary, inspection, photography, referral fee, repairs on a listed property, etc.