Tax Deductions for Realtors

As a Realtor, you are in business for yourself and, as such, you are entitled to claim tax deductions for business expenses. Use IRS Form 1040 and Schedule C to calculate deductions that will reduce your taxable income. Keep meticulous records throughout the year to back up your deductions.

Vehicle Expenses

Deduct business-use vehicle expenses. Take the standard mileage deduction of 55 cents per mile for 2009 offered by the IRS, or calculate your actual expenses, including vehicle depreciation.

Home Office

If you maintain a home office that you use exclusively for work as a Realtor, you may deduct a portion of your household expenses.

Supplies and Marketing

Claim the cost of business cards, post cards and other mailing supplies. Deduct advertising expenses and costs associated with holding open houses.

Education

Deduct the cost of required continuing education courses you must take to maintain your real estate license.

Dues and Fees

Claim dues you pay to your local Board of Realtors and fees you pay to participate in programs such as the Multiple Listing Service.

Health Insurance

Declare the cost of health insurance premiums you paid for yourself and your dependents. Claim the adjustment to your gross income on IRS Form 1040.

Resources

• IRS.Gov: Home Office Deductions
• IRS.Gov: Business Expenses