NAICS code: 531210
As you’re probably aware, it’s often said that you need to invest money in your business in order to make money, and this is especially true for real estate agents, who need to spend a lot of money upfront in order to attract clients.
As an example, you might wish to pay for social media ads to promote your services, give prospective clients bonuses such as complimentary home staging, or pay for leads from sites like Zillow so that you can advertise your services more effectively. You’ll be happy to know that because these expenses are necessary to your business, you can write them off as a tax deduction because they are necessary. The list goes on and on, and they are not the only ones doing it!
We have put together a list of the most common write-offs for real estate agents that you can use to deduct your expenses.
💵 Realtor dues
Use Schedule C, Box 27a, to write it off
Deduct any dues, fees or subscriptions to a realtor’s association or listing service.
👩🏫 Property promotion
Use Schedule C, Box 8, to write it off
Marketing material can be written off, from postcards, property signs to ads.
💸 Agency commissions
Write it off using: Schedule C, Box 10
Commission fees you pay for agency representation are fully deductible.
👤 Seminars & workshops
Write it off using: Schedule C, Box 27a
Coaching, seminars, or workshops to keep your work-related skills up-to-date.
👤 Legal fees
Use Schedule C, Box 17, to write it off
💵 Desk fees
Write it off using: Schedule C, Box 10
Fees you pay in exchange for a desk at your broker’s office or in a coworking space.
🌐 Website & hosting fees
Write it off using: Schedule C, Box 8
Squarespace, Wix, GoDaddy, and other website service fees.
🖼️ E&O insurance
Write it off using: Schedule C, Box 15
Real estate agents must carry errors and omissions insurance, which is deductible.
🎫 Business card
Write it off using: Schedule C, Box 8
Count your business cards as advertising expenses if your contact information on them.
📱Phone, laptop, accessories
Write it off using: Schedule C, Box 27a
If you buy a phone or laptop and use it for work, it’s partially deductible.
📚 Educational books
Write it off using: Schedule C, Box 27a
Educational books to increase your knowledge and skills are tax write-offs.
📝 Office supplies
Write it off using: Schedule C, Box 18
Any office supplies you purchase, like pens, binders, printer ink and whiteboards.
😎 Self-promotional
Write it off using: Schedule C, Box 8
Portfolios, business cards: write off anything you use to promote yourself.
🎫 Software
Write it off using: Schedule C, Box 18
Cost of CRM software, lead generation software, or e-mail marketing software.
📱 Social media tools
Write it off using: Schedule C, Box 18
Write off the tools you use to create assets, schedule posts or pull analytics.