It may be too late to beef up your 2016 tax return, but you have plenty of time to make sure next year’s return is a great pay day! By staying organized and keeping track of work expenses throughout the year, you can make sure you get the highest return possible.
Here are a few of the most commonly missed deductions for Realtors:
All of that driving around town showing houses can be included in your deductions. Keep in mind, mileage between houses and the office can be written off, but mileage from home to the office cannot. Try using the app MileIQ for stress-free logging. You can also write off car depreciation, insurance, interest on car loans, lease payments, and parking expenses.
Commission and Referral Expenses
Did you get a commission advance? Go ahead and write off the fees associated with it! Fees taken out of your commission are business expenses that can be used as deductions. Other business expense fees include referral fees to other agents, escrow fees, etc. Keep track of any fees that get taken out of your commission and there’s a good chance you can write them off.
Marketing and Advertising Expenses
This list could go on and on here! From open house expenses, to printed flyers, to online marketing, there are tons of options for write-offs here. It might seem cumbersome to keep track of all of these expenses, but it will be worth it when you get that hefty return!
In case you needed another reason to enhance your expertise, the cost of continuing education classes should be included in your deductions as well. Even classes you take that don’t necessarily correlate to real estate could qualify for the Lifetime Learning Credit. Keep track of all education related expenses just in case.
Professional Dues and Subscriptions
Most likely, you are required to be a part of some sort of Realtor association, either locally or nationally. Those dues can be written off. Need to renew your license? Write it off. Do you subscribe to any real estate magazines or online business resources? Keep track because those subscription fees can be written off too!
You can find a longer list of write-offs for agents here. Make sure you aren’t missing out on any cash from the IRS!