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Staying licensed and connected in the real estate world isn’t free, but the good news is that many membership fees, licensing costs, and brokerage-related expenses are tax-deductible.

Deductible Expenses:

• MLS Fees

• NAR and local association dues

• Brokerage desk fees

• Franchise fees

• Real estate license renewals

• Continuing education

You can’t sell houses without marketing yourself, and all advertising costs related to your business are tax-deductible. Whether you’re running social media ads, printing business cards, sending lead generating postcards, staging homes, or paying for professional photography, these costs can add up.

Deductible Expenses:

• Print and digital ads

• Business cards

• Real estate photography

• Videography

• Home staging

• Signage

• Website hosting

If you rent an office, work from a co-working space, or have a dedicated home office, you may be able to deduct the associated costs. Even a portion of your home utilities and rent/mortgage can be deducted if you have a space exclusively used for work. The IRS offers a simplified home office deduction ($5 per square foot, up to 300 sq ft), or you can itemize actual expenses.

Deductible Expenses:

• Home office deduction

• Office rent (if separate from desk fees)

• Utilities

• Internet

• Phone service (business-use portion)

From laptops and tablets to CRMs and accounting software, your business expenses go beyond just real estate transactions. IRS Section 179 lets you deduct 100% of the cost of necessary business equipment in the year you purchase it. Subscriptions to essential tools can also be written off.

Deductible Expenses:

• Computers, printers

• CRMs (learn how to choose a CRM here)

• Office furniture

• Security systems

• Accounting software (like RealtyZam!)

Real estate is a relationship-driven business, and many client-related expenses are tax-deductible. Taking a client out for a business lunch? 50% of the cost can be deducted. Buying a closing gift? You can deduct up to $25 per client. Even transportation costs for meeting buyers or sellers (like Uber and Lyft rides) can be written off.

Deductible Expenses:

• Client meals (50%)

• Closing gifts (up to $25 per client)

• Business-related transportation costs

Since you spend a lot of time driving to showings and client meetings, you can deduct vehicle expenses in one of two ways: standard mileage rate (67 cents per mile for 2024) or actual expenses (gas, maintenance, insurance, and depreciation). If you travel more than 100 miles for business, expenses like flights, hotels, and car rentals are also deductible.

Deductible Expenses:

• Mileage (or actual vehicle expenses)

• Parking

• Tolls

• Gas

• Car leases

• Flights

• Hotels

• Rental cars

(Travel expenses for business trips, not your Hawaiian vacation.)

Investing in your skills and industry knowledge pays off in more ways than one. The IRS allows you to deduct the cost of real estate courses, industry training, and even travel to conferences. Whether you’re attending a real estate convention or taking a coaching program, these expenses can help lower your tax bill.

Deductible Expenses:

• Continuing education

• Coaching programs

• Conferences (tickets and travel costs)

Running a real estate business comes with risks, and business insurance is not only smart, it’s deductible. If you pay for Errors & Omissions (E&O) insurance, general business liability, or even legal fees, these expenses can help reduce your taxable income. Even fees for tax preparation services are deductible.

Deductible Expenses:

• E&O insurance

• General liability insurance

• Attorney fees

• Tax prep services

If you took out a loan or use a business credit card to cover expenses, you can deduct the interest on those payments. This includes financing for business vehicles, equipment, or advertising campaigns. Just make sure your business and personal expenses are kept separate to make tax filing easier.

Deductible Expenses:

• Interest on business loans

• Business credit cards

• Financed equipment

As an independent contractor, you’re responsible for your own retirement savings, but contributions to IRA, Roth IRA, and SEP IRA accounts are deductible. You can also reduce tax-time stress by making quarterly estimated tax payments to avoid a large bill at the end of the year.

Deductible Expenses:

• Contributions to IRA

• Roth IRA

• SEP IRA

• Quarterly estimated tax payments

Just like you'd say to your clients, we aren't accountants and we recommend consulting with a tax professional for advice on claiming any of the deductions listed here.

The key to maximizing your tax savings is tracking every deductible expense throughout the year, and that’s where RealtyZam comes in.

Designed exclusively for real estate agents, RealtyZam automatically tracks income and expenses, syncs with your bank accounts, and generates detailed tax reports in seconds.

With RealtyZam, you can:

✅ Track tax-deductible expenses automatically.

✅ Connect bank and credit card accounts, sync transactions, and categorize every expense.

✅ Generate year-end tax reports with one click and send them to your accountant.

What's it Cost?

Realtyzam is 100% free to use during the 30-day free trial (no credit card required).

If you're a new agent or just getting back in the swing of things, the platform is still free after 30 days until you sell 2 properties or log $3,000 of income and expenses.

Realtyzam is tax deductible too, making the actual cost 15-35% less depending on your tax bracket.

Check them out at RealtyZam.com and tell them we sent you!