Being a real estate agent means wearing a lot of hats – marketer, negotiator, chauffeur and sometimes even therapist. But when tax season rolls around, you also become the bookkeeper. The good news is that many of the things you already spend money on to run your business can help lower your tax bill if you know how to claim them.
Of course, you could always hire an accountant to handle the details, but if you’re brave enough to tackle your taxes yourself, it pays to know what you can write off. We’ll walk through the most common real estate agent tax deductions, show where they appear on your forms and help you keep more of your hard-earned commission in your pocket and not the IRS’s.
Why tax deductions matter for realtors
Most real estate agents work as independent contractors, not salaried employees. That means no one’s taking taxes out of your commission checks for you and you’re responsible for paying your own income and self-employment taxes. The upside is that you also get to claim the many costs of running your business as deductions, which can make a serious difference when it’s time to file.
Every mile you drive, course you take or tool you pay for adds up. When you report your income and expenses on Schedule C (Form 1040) and figure your self-employment taxes on Schedule SE, those deductions help reduce how much of your hard-earned money the IRS can touch. Simply put, tracking what you spend isn’t just busywork. It’s one of the smartest ways to protect your income and so you can continue to grow your business.
20 real estate tax deductions you don’t want to miss
When it comes to your tax deductions, every dollar counts. It’s especially important when you’re footing the bill for your own business expenses. The key is knowing what you can legitimately write off and where it fits on your tax forms. Below are 20 common deductions real estate agents often qualify for, along with the IRS form or schedule where each one typically appears.
1. Vehicle expenses
- Where to claim it: Schedule C, Line 9 (Car and truck expenses)
Your car is one of the biggest tools of your trade from driving to showings to previewing listings and dropping off signs. The IRS lets you deduct either your actual expenses (like gas, insurance and maintenance) or use the standard mileage rate. The key for tracking this expense is to choose one method and stick with it throughout the year. In most cases, writing off your mileage will get you the best deduction.
2. Home office
- Where to claim it: Form 8829 + Schedule C, Line 30 (Business use of home)
If you have a dedicated space in your home that you use exclusively for your business, even a small nook or converted bedroom, you may be able to deduct part of your rent, utilities or mortgage interest. The IRS also offers a simplified method that calculates your deduction based on square footage.
3. Office rent or co-working space
- Where to claim it: Schedule C, Line 20b (Rent or lease—other business property)
Some agents prefer separating work and home life by leasing a small office or using a co-working space. These rental costs are fully deductible, whether it’s a private office, a shared desk or a meeting space for clients.
4. Marketing and advertising costs
- Where to claim it: Schedule C, Line 8 (Advertising)
Marketing is one of the largest (and most beneficial) deductions real estate agents can take. Whether you’re investing in professional photography, digital ads, signage or branded materials, anything spent promoting your business generally qualifies as a deductible expense. That includes listing flyers, social media ads, open house signs and even postage for direct mail campaigns. Just make sure your spending is tied to your business, not personal use. Keep digital receipts or invoices for your records.
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5. Professional fees
- Where to claim it: Schedule C, Line 17 (Legal and professional services)
You probably pay a handful of people each year to help keep your business running and almost all of it counts as a deduction. Your accountant, your attorney maybe even that consultant who helped you organize your systems or branding. Brokerage desk fees and franchise fees fall under this umbrella too. If it’s money you spend to stay compliant, legal or grow your business, the IRS generally sees it as a legitimate business expense.
6. Real estate license and renewal fees
- Where to claim it: Schedule C, Line 23 (Taxes and licenses)
Your real estate license is the one thing your business can’t function without. The cost to keep it active, including annual renewals, state fees and professional registrations, can all be deducted. Just remember that anything you paid before you were officially licensed doesn’t count. Once you’re up and running, though, those renewal fees are part of the cost of doing business.
7. Continuing education
- Where to claim it: Schedule C, Line 27a (Other expenses)
Real estate is one of those careers where you’re always learning. Sometimes because you want to, and sometimes because your state requires it. Either way, those courses are an investment in your business. Renewal classes, skill-building workshops or certifications that make you better at what you do can usually be written off. Just make sure the education relates directly to your current work as an agent and not a brand-new career field.
When it’s time to knock out your CE or pick up a new skill, The CE Shop is one of the easiest options out there. Their online platform is built for busy agents who need flexibility. You can log in from your phone or laptop, work through classes at your own pace and get credit the moment you finish. The courses are well-designed, state-approved and genuinely helpful for staying sharp in a competitive market. Check out The CE Shop to finish your CE hours or explore new certifications and turn that professional growth into a business write-off while you’re at it.
8. Business meals and client entertainment
- Where to claim it: Schedule C, Line 24b (Meals)
Grabbing coffee with a client or taking them out to lunch to talk shop can count toward your deductions as long as there’s a clear business purpose. You can usually write off 50% of qualifying meal expenses, so save those receipts. Just make a quick note on each receipt about who you met with and what you discussed. A little documentation goes a long way if the IRS ever asks.
9. Cell phone and internet bills
- Where to claim it: Schedule C, Line 25 (Utilities or Other expenses)
Your phone and internet are the backbone of your business. You probably spend more time scrolling the MLS or texting clients than talking to friends. You can deduct the business portion of your bill that’s used for business, so if 70% of your phone and Wi-Fi use is work-related, that’s 70% of your total cost that’s deductible. Keep those monthly statements handy if you ever need to show proof.
10. Technology and software
- Where to claim it: Schedule C, Line 27a (Other expenses)
It’s nearly impossible to run a real estate business without tech these days. Between your CRM, digital signature tools, marketing platforms and data subscriptions, software probably eats up a good part of your monthly budget. The good news? Those costs are deductible. These costs add up over time and can make a noticeable difference in your return.
If you’ve ever felt buried in transaction paperwork or tired of piecing together tools that don’t talk to each other, ListedKit AI can help. It’s an all-in-one transaction management platform built for agents and teams who want to stay organized without overcomplicating things. ListedKit uses AI to handle tasks you’d normally spend hours doing – like drafting timelines, tracking documents and keeping everyone in the loop. Check out how ListedKit AI can simplify your workflow and help you focus on clients, not checklists.
11. Business Insurance
- Where to claim it: Schedule C, Line 15 (Insurance—other than health)
Insurance may not be exciting, but it’s essential and deductible. Whether you’re paying for E&O coverage, general liability or business property insurance, those premiums are considered part of your operating costs. They’re the safety net that keeps your business protected, and the IRS recognizes them as a necessary expense. Even if you pay for it through your brokerage, it’s a deduction for you.
12. Association and MLS dues
- Where to claim it: Schedule C, Line 27a (Other expenses)
Your MLS access and professional memberships aren’t just nice to have. They’re what keep you plugged into the market and give you the ability to service your clients. The fees you pay to your local MLS, Realtor associations and other professional groups can all be written off. Just note that political contributions or portions of dues used for lobbying aren’t deductible, even if they appear on the same invoice.
13. Office supplies
- Where to claim it: Schedule C, Line 18 (Office expenses)
Every pen, printer cartridge, notepad and sign you buy for your business adds up. Those everyday supplies you go through without thinking twice, like paper, folders, ink, clipboards and business cards, are all deductible as long as they’re used for work. Keep your receipts or digital payment confirmations to support your deduction. Those small expenses can make a real dent in your taxable income by year’s end.
14. Equipment depreciation
- Where to claim it: Form 4562 (Depreciation and Amortization)
Laptops, cameras, phones and office furniture don’t last forever, and the IRS knows that. When you buy big-ticket items for your business, you can deduct their cost over time through depreciation. In some cases, you may be able to write off the entire purchase in the same year using Section 179 – something your accountant will help you decide.
15. Travel and lodging
- Where to claim it: Schedule C, Line 24a (Travel)
If you travel for conferences, training or out-of-town showings, you can deduct your airfare, hotel and other business-related travel expenses. Meals while traveling count too, but usually at 50% of your expense. The key is to document the purpose of your trip and keep receipts for everything. Mixing business and pleasure? That’s perfectly fine too, as long as you only deduct the business-related portion.
16. Gifts for clients
- Where to claim it: Schedule C, Line 27a (Other expenses)
A thoughtful closing gift will go a long way toward building lasting relationships and thankfully, a portion of those costs can be deducted. The IRS allows up to $25 per client per year for business gifts. It’s not a huge amount, but when you’re closing multiple deals a year, it adds up. Keep your receipts and a short note about who the gift was for and the purpose. This only takes a second and can make tax time much easier.
17. Subscriptions and memberships
- Where to claim it: Schedule C, Line 27a (Other expenses)
From design tools and content libraries to industry publications and data platforms, many of the subscriptions you rely on every month are deductible. If it supports your business in any way, it likely qualifies. Think about what you spend money on to create marketing materials, analyze market trends or stay up to date on industry news. Like with every other deduction, save your receipts so you have a record of your expenses down the road.
If you’re creating listing flyers, social posts or marketing materials yourself, Canva is one of the easiest tools to use. Its drag-and-drop templates let you design professional-looking graphics without a designer, and the pro version offers brand kits, content scheduling and premium photos that make your materials stand out. Use Canva to design your next marketing piece and turn your creative work into a fully deductible business expense.
18. Commission splits to other agents
- Where to claim it: Schedule C, Line 10 (Commissions and fees)
If you’re a broker who pays a commission split to another agent, that payout is deductible. Same thing if you pay a referral fee. It’s part of how you earn your income, so the IRS treats it as a business expense. Just keep track of who you paid and which deal it was for. A quick note in your transaction file is usually enough.
19. Assistants and independent contractors
- Where to claim it: Schedule C, Line 11 (Contract labor)
Whether you have a transaction coordinator, a virtual assistant or a photographer you use for listings, what you pay them counts as a business expense. If you pay someone more than $600 in a year, you’ll need to send them a 1099; otherwise, just keep your invoices and proof of payment. You’re paying for help that lets you do your job better, and that’s exactly what this deduction covers.
20. Banking and credit card fees
- Where to claim it: Schedule C, Line 27a (Other expenses)
Those little banking fees your bank charges every month? They’re deductible too. The same goes for credit card interest or processing fees from companies like PayPal, CashApp or Venmo. While you’re typically not collecting payments from anyone, it’s just as important to note. They might not seem like much, but they add up over a year and every bit helps when you’re paying self-employment taxes.
Real estate tax deductions: FAQs
Can you write off expenses as a real estate agent?
Yes, and you should. Most agents are considered self-employed, which means you’re responsible for your own taxes but also eligible to deduct legitimate business expenses. Anything that’s ordinary and necessary for running your business. Think marketing, mileage, office supplies, professional fees and tech tools which can usually be written off. Just make sure it’s tied directly to your work as an agent, not something personal.
Can realtors write off clothing?
No, I wish. Even if you buy clothes just for showings or client meetings, the IRS counts that as personal. The only time it qualifies is if it’s something you’re required to wear for work and you wouldn’t normally wear anywhere else like a shirt with your brokerage logo or branded gear you use for marketing. Nice work outfits, even if you only wear them for real estate, don’t make the cut.
What documentation do I need to keep on record and for how long?
Keep everything. Receipts, invoices, mileage logs, bank statements and proof of payment are all considered documentation for the IRS. They recommend holding on to records for at least three years, but five to seven years is safer, especially if you claim larger deductions or depreciate equipment. Digital copies are fine, so use apps or folders to stay organized. The key is being able to show how each expense ties back to your business if anyone ever asks.
The full picture: Real estate tax deductions
Taxes aren’t fun, but they’re part of running your own business. The more you understand what you can write off, the less stressful it all feels. Keep your receipts, make notes when you spend money for work and try to stay organized throughout the year instead of scrambling in April.
If you’re not sure about something, ask a CPA who knows real estate. It’s worth paying for good advice, especially if it saves you from mistakes later. The goal isn’t just to get through tax season – it’s to actually keep more of what you’ve worked for.
