The best tax deductions for Realtors and loan officers.

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If you’re a Realtor or loan officer, it probably feels like you spend the lion’s share of your time collecting and organizing other people’s documents. But now that it’s 2017 and April 15 isn’t too far away, it’s time to get your own financial house in order for the IRS.

Considering that most Realtors, loan officers, and brokers are self-employed, that means getting a (hopefully sizable) 1099 with your income and commissions, so using every tax deduction that is legally available is critical to your bottom line.

You worked so hard all year to earn that income, so it’s worth a little more time and effort to make sure you keep as much of it in your pocket as possible.

Just how much can a few new tax deductions save you? To use an example just as a hypothetical illustration, let’s say you’re single and your taxable income is $100,000. Every dollar you deduct from your taxable income will save you almost 50 cents in taxes that you have to pay! Remember, too, that you’ll be paying federal, state, and probably self-employment taxes, so the right deductions can go even further. This includes 28% in federal income taxes, 15.3% in self-employment taxes, and an average of 6% in state income taxes.

The good news is that there are scores of potential tax deductions for real estate and mortgage professionals to take advantage of. In fact, according to the IRS, any expense for your real estate or lending business is deductible if it is:

The expense doesn’t need to be a necessity, just help your business in some way, even if it’s small or a one-time expense.

But remember that you can’t deduct personal expenses, and that’s a fine line you’ll have to clearly prove with receipts, records, account statements. Etc. in case of an audit

Disclaimer: we are not tax experts or tax preparers. This information is collected from multiple tax blogs, articles and experts online with the intention of alerting you to some of the tax deductions so you can discuss them with your CPA or tax preparer.

Here is a list of common tax deductions for Realtors and loan officers to help get you started:

Advertising and Marketing

Billboards/Bus Stop Ads

Brochures/Flyers

Business Cards

Copy Editor Fees

Clothing, etc. with your logo in it

Direct Mail

Email Marketing and Newsletters

Events

Graphic Designer Fees

Internet Ads (Google, Facebook, etc.)

Leads/Mailing Lists

Logo

Marketing Services

Mobile Apps

Networking Event Costs

Post Cards

Print Ads (Newspapers and Magazines)

Promotional Materials

Radio Ads

Signs/Banners

Social Media Marketing Costs

Television Ads

Web Design

Web Hosting and Domain Fees

 

Agent Improvement

Books (Sales Books, RE Books, etc.)

Continuing Education

Magazine Subscriptions

Newsletter Subscriptions

Sales Training/Coaching

Seminars

Textbooks/Reference Books

Trade Publications

 

Auto and transportation

Either Business Mileage (55.5 cents per mile) or…

Auto Expenses:

Car Washes

Depreciation/Lease Payments

Gas

Insurance

Interest

License/Registration

Maintenance

Repairs

Tires

Both Methods can Deduct:

Car Washes

Tires

 

Travel

Airfare

Cab Fare/Uber/Lyft

Car Rental

Dry Cleaning/Laundry

Lodging

Meals and Entertainment ((only 50 percent deductible)

Parking/Tolls

Taxi, Train, Subway, Bus

Tips

 

Business Meals, Business Entertainment, Communication

Answering Services

Cell Phone Service

Fax Expenses/Efax

Interactive Voice Response (IVR)

Internet Service

Office Telephone/VOIP

Toll Free Number

 

Equipment

Briefcase, laptop bag, business bag etc.

Mortgage calculator (or normal calculator)

Camera/Lenses

Cellphone/Smartphone

Cleaning Equipment (Vacuum Cleaner)

Computer

Equipment Repair

Flashlight

GPS

Hard Drives/Thumb Drives

Ipad/Tablet PC/Android

Laptop

Lock Boxes/Locksmiths/Keys

Maps

Printer

Scanner

Staging Items – Furniture

Tape Measure

Video Camera

 

Employee Wages

Clerical Support

Family Wages

Payroll/Unemployment Taxes

Sales Assistant

State and Local Business Taxes

Virtual Assistant

 

Health Insurance, Home Office

Insurance

Mortgage Interest/Rent

Property Taxes

Repairs/Maintenance

Security System

Solar

Utilities

 

Office Expenses

Bank Charges

Brokerage fees

Desk Fees

Client Refreshments (Coffee, Water, etc.)

Copier Fees

Janitorial Services

Office Furniture

Bookshelves

Chairs

Desks

Filing Cabinets

Office Supplies

Envelopes

Folders

Paper

Pens

Postage

Stationary

Software/Programs

Technology Fees

Toner/Ink

Office Rent

Online Storage of Business Files

Software

 

Professional Fees

Accountant Fees

Association Dues/Fees

CAR

NAR

SAR (or your regional association)

NAMB

Chamber of Commerce

Networking groups

Referral groups

Bank Fees

Bookkeeping Fees

Business Liability Insurance

Business Licenses

E & O Insurance

Franchise/Affiliation Fees

Interest on Business Purchases

Legal Fees

MLS Fees

Real Estate License and Renewal

Tax Prep Fees

 

Retirement

Defined Benefit Plan

Self Employment Pension (SEP)

Simple IRA

Solo 401k

 

Selling Expenses

Appraisal Fees

CL100 Fees

Client Gifts (<$25 per client)

Closing Attorney Fees

Concessions

Courier Services/Delivery Fees

Finder Fees/Referral Fees

Home Repairs to sell listed property

Home Warranty

Inspection Fees

Notary Fees

Open House Expenses

Photo Editing

Staging Fees

 

Start-Up Expenses

Including organizational costs

Secretary of State filing, etc.

Domain registration

Marketing and printing costs

Licensing fees

 

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