Most real estate agents leave thousands on the table simply because they don't know what's deductible. This guide covers the 10 deductions that matter most for your commission income.
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The complete guide to maximizing your deductions and keeping more of what you earn.
Here's what most agents miss — and how to claim them.
MLS membership, local Realtor Association dues, and NAR national fees ($215/year) are all deductible as ordinary and necessary business expenses.
Every dollar you spend on advertising, signage, brochures, website hosting, and digital marketing is deductible. This includes ZillowPremier Agent, realtor.com leads, and social media ad spend.
If you work from home for any business activity — even just taking calls or managing paperwork — you qualify. The simplified method gives you $5/sq.ft. up to 300 sq.ft. (max $1,500). The regular method can save much more if your home office is larger or your rent/mortgage is high.
The IRS standard mileage rate for 2024 is 67 cents/mile for business driving. If you drive 15,000 business miles per year (not unusual for an active agent), that's over $10,000 in deductible expenses. Keep a detailed log of every business trip.
CRMs (Bulldog Reporter, Follow Up Boss), transaction management tools, DocuSign, Dropbox, Google Workspace, Microsoft 365, and even your cell phone bill are deductible. Agents typically overlook 5–8 monthly subscriptions that add up fast.
Your broker's split and desk fees are deductible expenses. But many agents also qualify to track additional transaction costs — marketing fees, franchise fees, and transaction coordinator charges — as deductible business expenses that reduce your net commission income.
Continuing education courses required to maintain your license are deductible. So are industry conferences, real estate investing seminars, business coaching, and any courses that improve your professional skills. Your state real estate license renewal fee is also deductible.
Legal fees, accounting services, business consulting, and even the portion of your tax preparation fee attributable to your business income are deductible. If you pay someone to manage your rental properties, that cost is also deductible.
Client gifts up to $25 per recipient are deductible. Lunches and dinners with clients are 50% deductible if you discuss business. Team events, brokerage open houses, and client appreciation events all qualify — though the rules here are nuanced.
As a self-employed agent, you may be able to deduct 100% of your health insurance premiums — including coverage for your spouse and dependents. You're also eligible to contribute to a Solo 401(k) or SEP IRA, reducing your taxable income by thousands.
Every agent's situation is different. We'll review your specific deductions, identify what you might be missing, and build a tax strategy tailored to your real estate income.