Real Estate Agent Tax Write-Offs

Real estate agent tax write-offs require diligent recording of yearlong expenses. An agent can claim a myriad of costs when filing an annual tax return, but all claims must be documented. Mileage costs add up quickly for busy agents and can result in thousands of dollars of valid deductions.

Mileage Log

A driving log should always be kept in an agent's car to record mileage. Agents can claim mileage when meeting a client to sign paperwork, when driving to an open house or when showing a listing. Travel related to the course of conducting business can also be claimed as a tax deduction. Agents should log miles driven when attending training classes, searching for potential property listings and checking on listed properties between showings.

Office Expenses

Real estate agents can also claim office expenses. Depending on the contract an agent signed with a broker, specific fees must be paid to the brokerage. If an agent is charged a desk or space fee, it can be claimed as a write-off on taxes. Other costs associated with doing business might include the cost of business cards, advertisements and a cell phone used primarily for business purposes. Agents should keep a copy of their monthly cell phone bill and highlight all calls related to the practice of real estate.

Sponsorships and Donations

Sponsorships of nonprofit and public school groups and activities are also generally tax-deductible. Before writing a check to such an organization, the proposed sponsorship or donation should be discussed with an accountant. Funds given to organizations that hold 501(c)(3) status are typically approved as legitimate tax deductions. Any item used to promote the real estate agent can be claimed as a business expense, but must be documented with a receipt.

Website Fees

The cost of a website that promotes the real estate agent can be deducted as a business expense. Any funds paid to another person to create the website or take photos for use on the domain should also be included in the documented expenses.

Licensure and General Supplies

Real estate agent license fees, continuing-education costs and general supplies are also tax write-offs. Supplies used in the course of business include far more than staples and file folders. Digital cameras, batteries, a battery charger and photo paper are legitimate write-offs. During the course of a regular workweek, a real estate agent should take notes on items used at the office and when preparing for a listing or open house.