Real Estate Agent Tax Deductions Checklist

Real Estate Agent Tax Deductions Checklist: From sales transactions, most of the real estate brokers and agents receive income in the form of commission. Under the federal tax guidelines, you are not considered an employee, even if you are a broker or agent worker for a real estate brokerage firm, but rather a sole proprietor a self-employed. In your real estate property management and sales activities, this self-employed status will allow you to deduct many of the expenses you incur. Knowing your eligible write-off and record-keeping, so be careful because these are the key to getting all the tax deductions you are entitled to. 

At any deduction can I claim?

On services or products that are directly related to your income during the financial year, you can claim deductions on any money spent. You need to keep a record of the expense such as an invoice or receipt and you have to need to be spent the money for yourself (by tour employer it cannot have been reimbursed).

What tax deduction that can I claim?

When you work in real estate there is a wide range of deductions that you can claim. Such as:

  • Car expenses, such as attending inspection or open houses if you need to drive for work-related reasons, or owned by your employer traveling between different offices (to attend meeting such as between the head office and your regular office).
  • For work purpose, if you are bought gifts such as flowers, hampers or a bottle of alcohol (for Clint), and you are a property manager or a salesperson who receive a commission.
  • The advertising cost (such as through, letterbox drops, bunting and signage, and newspapers). If you earn your income from a fixed salary you cannot claim a deduction for the cost of advertising and earn commission you are not entitled to.
  • Any marketing equipment you use of the work-related portion such as a digital camera that is used for taking photos of properties or things.
  • Conferences or training and self-education that are directly related to your work line such as certificate or license of real estate agents.
  • If it’s a uniform is compulsory then the cost of cleaning repairing and purchasing of work cloth. And if there is a logo on a uniform that identifies you as working of your employer.

What the tax deduction that I cannot claim?

You cannot claim there are many key expenses, such as:

  • Any equipment or tools if it is provided by tour employers such as camera or laptop.
  • Training and self-education that is not directly related to your work line and in the future intended to help you transition to a different career, like your law degree.
  • If you discuss your business even when you are there then attend any concerts or sporting events or any entertainment such as taking prospective clients to lunch.
  • At work time, office clothing such as comfortable shoes or business suit even if you is wearing on at the workplace.


In this article, I will try to discuss the thing that you claim as real estate agents tax. And also describe that condition when you did not claim as real estate agents. I also describe the criteria at the different stages when you claim.(Real Estate Agent Tax Deductions Checklist)

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