Agents can deduct miles driven for all business-related activities like meeting clients, previewing properties, open houses, and driving to properties listed for sale.

Yes, mileage to drive to meet sellers, preview listings, host open houses, attend showings, and all other business trips related to listings is deductible.

Keep a contemporaneous mileage log documenting date, purpose, origin, destination and total miles for each real estate-related trip, with odometer start and end readings.

Yes, you can deduct the business use percentage of monthly cell phone expenses, calculated by the portion of time/use dedicated to real estate activities.

Apps like Everlance automatically record your mileage and allow tagging drives with a simple swipe for work or personal. This eliminates manual logging and provides detailed records.

Most agents claim the standard business mileage rate, which is simpler. But deducting actual expenses may yield a larger deduction with detailed records. Consult a tax pro.

Yes, any tools, equipment, electronics, supplies, and services specifically used for your real estate business are deductible, like lockboxes, signs, listings sites, staging, etc.

Commonly deducted real estate agent expenses include mileage, vehicle costs, phone use, advertising, MLS fees, licenses, home office, professional fees, office supplies, open house refreshments, and more.

Add up your total business miles logged for the year and divide by your total annual mileage driven according to your odometer to determine the deductible business use percentage.

No, any expenses reimbursed by your brokerage should not be included in your mileage or expenses deducted on your tax return to avoid double dipping.

Typically yes, to avoid underpayment penalties on your 1099 income, agents should pay quarterly estimated taxes if expecting to owe over $1,000 when filing their return.

A contemporaneous mileage log separating all business and personal trips, with comprehensive origin, destination and purpose data for every trip clearly differentiates between real estate and personal driving.

Yes, advertising costs, legal and professional services, MLS fees, licenses, dues, and business expenses directly related to your real estate services are deductible.

Keep extensive documentation of all deductible real estate expenses, mileage logs, bank records, receipts, and invoices for at least 3 years after filing your return, and ideally for 6 years.

Gifts or snacks for open houses are deductible, but generally meals with clients are only 50% deductible under the tax code. Entertainment expenses have strict limits.

Mileage to preview listings, follow up with agents at listed properties, travel between showings, and returning from open houses are often overlooked sources of deductible mileage.

Review GPS history, texts/calls to clients, appointment books, and typical routes driven to estimate untracked mileage. But accurate logs are always recommended.

Deduction opportunities are very similar, but an independent contractor agent files Schedule C, while an employed agent files Form 2106. Company agents also cannot deduct reimbursed expenses.

Yes, fees paid to an accountant, enrolled agent, or tax software to prepare and file your real estate business taxes are deductible on Schedule C.

Yes, you should deduct any expenses already reimbursed by your brokerage. The reimbursement offsets allowed deductions.

Yes, if you receive the whole amount for commission, and then give another broker their share, the entire amount is determined as income and the split is an expense(which is tax deductible)