Tax Savings for Real Estate Agents

Managing your finances and taxes as a real estate agent can oftentimes be a challenging task. With various expenses, taxes, and other daily expenditures, at the end of the month, saving money and managing taxes can become quite hectic. However, being a real estate agent, there are several hidden tax write-offs or tax savings that you should be aware of. These tax savings can help you reduce the overall burden of taxes that are owed to the IRS. With these tax savings, your finances and taxes are bound to be better organized and in the end, benefit you financially. So let’s get started!

1. Special COVID-19 Deductions

2020 presented some unique challenges. Many of us had to conduct business completely differently than how we may have done so in the past in order to stay open and stay safe! Below are some expenses you may incurred as a result of operating your business during the COVID-19 Global Pandemic:

  • Personal Protective Equipment (PPE) such as gloves and masks for yourself, employees, and/or clients

  • Hand sanitizer and other cleaning supplies for open houses

  • Video Conferencing Web Software Fees (Zoom, MS Teams, etc.) for meetings with clients and/or staff

  • Home Office Expenses

2. Licenses, Insurance, and Fees

Another tax deduction that real estate agents can claim are for the expenses made towards annual license costs, insurance, memberships, and other fees. The fees that you pay for your state license renewal, MLS dues, and any other professional memberships can be deducted from your payable taxes and save you money.

3. Advertising and Marketing Expenses

Any form of advertising that you pay for is also a tax-deductible. Whether you pay for online and digital marketing or you pay for other marketing materials like mailings, banners, or posters, all these expenses can be written off on your taxes.

4. Education and Training Expenses

With the real estate industry evolving and changing, educating yourself and maintaining an edge is necessary. And what’s better is that all the expenses you make towards your education and training are also tax-deductible. One place where you can enhance your skills and reach your full potential is right here at Skyline School of Real Estate. Here, you can learn and enhance your knowledge by taking up various classes. Developing yourself and maximizing your potential as a real estate agent has never been easier. We offer Live Online and Self Paced classes so you are sure to find something to work with your schedule. Ready to take your career to a new level?

Click here to sign up for a class today!

5. Desk Fees

Another tax-write off that you can claim as a real estate agent is the expenses made towards desk fees. Whether you are an independent broker or you’re associated with a national franchise, the desk fees that you pay are tax deductible.

6. Referrals