[vc_section full_width=”stretch_row” el_id=”banner-cont” css=”.vc_custom_1551798043178{padding-top: 70px !important;padding-bottom: 130px !important;background-image: url(https://bookkeepingzoom.com/wp-content/uploads/2019/03/banner.png?id=821) !important;background-position: center !important;background-repeat: no-repeat !important;background-size: cover !important;}”][vc_row][vc_column][vc_single_image image=”822″ img_size=”full” alignment=”center” onclick=”custom_link” link=”https://bookkeepingzoom.com/” css=”.vc_custom_1551798173323{margin-bottom: 20px !important;}”][vc_custom_heading text=”The Ultimate List of
Tax Deductions For Real Estate Agents” font_container=”tag:h2|font_size:40px|text_align:center|color:%23ffffff|line_height:45px” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal” css=”.vc_custom_1604279608106{margin-bottom: 10px !important;}”][vc_custom_heading text=”Reduce your tax bill by deducting these 18 expenses.” font_container=”tag:p|font_size:28px|text_align:center|color:%23ffffff|line_height:35px” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:300%20light%20regular%3A300%3Anormal”][/vc_column][/vc_row][/vc_section][vc_section full_width=”stretch_row” el_id=”content-cont” css=”.vc_custom_1551799700805{background: #ffffff url(https://bookkeepingzoom.com/wp-content/uploads/2019/03/cont-bg.png?id=831) !important;background-position: 0 0 !important;background-repeat: no-repeat !important;}”][vc_row][vc_column][vc_column_text]It’s that time of year for real estate agents. You are getting ready for 2021 and gathering receipts from 2020! The easiest way to reduce your income tax bill is to make sure you are claiming all tax deductions available to your business.

We wanted to make sure you didn’t miss anything, so have put together The Ultimate List of Small Business Deductions For Real Estate Agents:

*Note that some deductions we outline may not be available to your business. We recommend you speak with a CPA/tax advisor before making deduction claims.[/vc_column_text][vc_custom_heading text=”1. Advertising and promotion” font_container=”tag:h3|font_size:30px|text_align:left|color:%231e1e1e|line_height:35px” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal” css=”.vc_custom_1551799130335{margin-bottom: 15px !important;}”][vc_column_text]Marketing your business is 100% deductible! This includes things like printing, online ads, email marketing, events, and more. [/vc_column_text][vc_custom_heading text=”2. Business meals” font_container=”tag:h3|font_size:30px|text_align:left|color:%231e1e1e|line_height:35px” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal” css=”.vc_custom_1551799219477{margin-bottom: 15px !important;}”][vc_column_text]For meals to qualify as a deduction, they must be business related. As the business owner, you must keep track of the date/place of the meal, the amount of the expense, and who the person you dined with was – what is their relationship to your business? We recommend noting this on the back of the receipt so you can refer to it later.

You can deduct 50% of qualifying business meals.[/vc_column_text][vc_custom_heading text=”3. Business insurance” font_container=”tag:h3|font_size:30px|text_align:left|color:%231e1e1e|line_height:35px” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal” css=”.vc_custom_1551799968835{margin-bottom: 15px !important;}”][vc_column_text]Business insurance is deductible. If you have a home office, you can also deduct the cost of your insurance as a part of your home office deduction.
[/vc_column_text][vc_custom_heading text=”4. Business interest and bank fees” font_container=”tag:h3|font_size:30px|text_align:left|color:%231e1e1e|line_height:35px” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal” css=”.vc_custom_1551799996778{margin-bottom: 15px !important;}”][vc_column_text]If you borrow money from the bank for your business, you can deduct the interest you are charged on the money owed. You can also deduct the interest owed on business credit cards.

Bank fees and bank charges are also deductible.

Keep in mind that is the loan is a personal loan and not a business loan, it is not tax deductible.[/vc_column_text][vc_custom_heading text=”5. Business use of your car” font_container=”tag:h3|font_size:30px|text_align:left|color:%231e1e1e|line_height:35px” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal” css=”.vc_custom_1551800025735{margin-bottom: 15px !important;}”][vc_column_text]If you use your vehicle solely for business purposes, the entire cost of operation of the vehicle is deductible. If it is used for both business and personal, the business related usage is deductible but the personal usage is not.

You can also deduct a new vehicle purchase on your return. Consult with your CPA regarding your purchase to explore the amount that is deductible for your vehicle type.

When claiming mileage, there is a standard mileage deduction. You can deduct your actual costs, or use the standard. Even if your actual costs are less than the standard rate, you can still use it.[/vc_column_text][vc_custom_heading text=”6. Charitable contributions” font_container=”tag:h3|font_size:30px|text_align:left|color:%231e1e1e|line_height:35px” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal” css=”.vc_custom_1551800060024{margin-bottom: 15px !important;}”][vc_column_text]If you made a charitable contribution to a qualified organisation, it is deductible.[/vc_column_text][vc_custom_heading text=”7. Child and dependent care expenses” font_container=”tag:h3|font_size:30px|text_align:left|color:%231e1e1e|line_height:35px” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal” css=”.vc_custom_1551800107187{margin-bottom: 15px !important;}”][vc_column_text]Child care or dependant person care is deductible. This is for children under the age of 12 or a spouse who is physically or mentally incapable of self-care.[/vc_column_text][vc_custom_heading text=”8. Education” font_container=”tag:h3|font_size:30px|text_align:left|color:%231e1e1e|line_height:35px” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal” css=”.vc_custom_1551800145405{margin-bottom: 15px !important;}”][vc_column_text css=”.vc_custom_1551800503715{margin-bottom: 0px !important;}”]Education and courses are deductible if they add value to your business and increase your expertise. The IRS will look at whether the expense maintains or improves skills that you require for your business. This includes:[/vc_column_text][ultimate_icon_list icon_size=”12″ icon_margin=”10″][ultimate_icon_list_item icon=”Defaults-circle” icon_color=”#ed1c24″ content_font_size=”desktop:20px;” content_line_ht=”desktop:25px;” content_font_color=”#181818″]Classes[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-circle” icon_color=”#ed1c24″ content_font_size=”desktop:20px;” content_line_ht=”desktop:25px;” content_font_color=”#181818″]Seminars and webinars[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-circle” icon_color=”#ed1c24″ content_font_size=”desktop:20px;” content_line_ht=”desktop:25px;” content_font_color=”#181818″]Subscriptions [/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-circle” icon_color=”#ed1c24″ content_font_size=”desktop:20px;” content_line_ht=”desktop:25px;” content_font_color=”#181818″]Books [/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-circle” icon_color=”#ed1c24″ content_font_size=”desktop:20px;” content_line_ht=”desktop:25px;” content_font_color=”#181818″]Workshops[/ultimate_icon_list_item][/ultimate_icon_list][vc_custom_heading text=”9. Energy efficiency property expenses” font_container=”tag:h3|font_size:30px|text_align:left|color:%231e1e1e|line_height:35px” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal” css=”.vc_custom_1551800617130{margin-bottom: 15px !important;}”][vc_column_text]Energy efficient upgrades to your home may qualify for tax credits. Examples include solar hot water heaters, solar electric equipment, and wind turbines.[/vc_column_text][vc_custom_heading text=”10. Home office” font_container=”tag:h3|font_size:30px|text_align:left|color:%231e1e1e|line_height:35px” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal” css=”.vc_custom_1551800663305{margin-bottom: 15px !important;}”][vc_column_text]For your home office, you are able to deduct $5 per square foot if it is used for your business, up to a 300 square foot maximum.
[/vc_column_text][vc_custom_heading text=”11. Legal and professional fees” font_container=”tag:h3|font_size:30px|text_align:left|color:%231e1e1e|line_height:35px” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal” css=”.vc_custom_1551800758682{margin-bottom: 15px !important;}”][vc_column_text]If a legal or professional fee is related to running your business, it is deductible. These are fees charged but lawyers, accountants, and even bookkeeepers like us![/vc_column_text][vc_custom_heading text=”12. Medical care expenses” font_container=”tag:h3|font_size:30px|text_align:left|color:%231e1e1e|line_height:35px” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal” css=”.vc_custom_1551800787329{margin-bottom: 15px !important;}”][vc_column_text]You can deduct medical care such doctor’s fees, prescription drugs, and homecare. You can also deduct health insurance costs if you pay for your own health insurance, as well as health insurance for your spouse or dependants. [/vc_column_text][vc_custom_heading text=”13. Mortgage interest paid” font_container=”tag:h3|font_size:30px|text_align:left|color:%231e1e1e|line_height:35px” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal” css=”.vc_custom_1551800812861{margin-bottom: 15px !important;}”][vc_column_text]The interest you pay on mortgage loans to buy, build, or improve your home are tax deductible. [/vc_column_text][vc_custom_heading text=”14. Moving expenses” font_container=”tag:h3|font_size:30px|text_align:left|color:%231e1e1e|line_height:35px” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal” css=”.vc_custom_1551800835002{margin-bottom: 15px !important;}”][vc_column_text]Moving expenses are fully deductible if the main reason for the move is work. You also need to meet the distance test and the time test.

To pass the distance test, your new main job location needs to be at least 50 miles farther from your former home than your old main job location was from your former home.
To pass the time test, you need to work full-time for at least 39 weeks (about 10 months) during the first 12 months, and for at least 78 weeks (about 18 months) during the first 24 months that you live in your new job location area.

If you are moving for work purposes, then moving expenses are deductible. Both distance and time are taken into consideration:

Distance – your job location need to be 50 miles further from your previous home than your new home.

Time- You need to work about 10 months during the first 12 months and about 18 months in the first 24 months that you live in your new.[/vc_column_text][vc_custom_heading text=”15. Retirement contributions” font_container=”tag:h3|font_size:30px|text_align:left|color:%231e1e1e|line_height:35px” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal” css=”.vc_custom_1551800869886{margin-bottom: 15px !important;}”][vc_column_text]IRA Contributions can help reduce your taxable income for the year.[/vc_column_text][vc_custom_heading text=”16. Salaries and benefits” font_container=”tag:h3|font_size:30px|text_align:left|color:%231e1e1e|line_height:35px” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal” css=”.vc_custom_1551801285359{margin-bottom: 15px !important;}”][vc_column_text]Salaries, benefits, and vacation time paid to workers are deductible if the worker is an employee and not a independent contractor, sole proprietor, partner or LLC member. Their salary also must be deemed reasonable, and they must have followed through on providing the services required for their job to the company. [/vc_column_text][vc_custom_heading text=”17. Telephone and internet expenses” font_container=”tag:h3|font_size:30px|text_align:left|color:%231e1e1e|line_height:35px” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal” css=”.vc_custom_1551801398018{margin-bottom: 15px !important;}”][vc_column_text]Phone and internet are deductible, but only the percentage of cost of these expenses that was used for business. We recommend keeping a record to prove business use vs. personal use. [/vc_column_text][vc_custom_heading text=”18. Travel expenses” font_container=”tag:h3|font_size:30px|text_align:left|color:%231e1e1e|line_height:35px” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal” css=”.vc_custom_1551801436168{margin-bottom: 15px !important;}”][vc_column_text css=”.vc_custom_1551802148082{margin-bottom: 0px !important;}”]Business travel must be away from the city you work in and require you to be away for more than 1 day and require you to sleep away from home.[/vc_column_text][ultimate_icon_list icon_size=”12″ icon_margin=”10″][ultimate_icon_list_item icon=”Defaults-circle” icon_color=”#ed1c24″ content_font_size=”desktop:20px;” content_line_ht=”desktop:25px;” content_font_color=”#181818″]Travel to and from home by plane, train, bus, or car[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-circle” icon_color=”#ed1c24″ content_font_size=”desktop:20px;” content_line_ht=”desktop:25px;” content_font_color=”#181818″]Travel for getting around at your destination (use of your car or a rental)[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-circle” icon_color=”#ed1c24″ content_font_size=”desktop:20px;” content_line_ht=”desktop:25px;” content_font_color=”#181818″]Parking fees[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-circle” icon_color=”#ed1c24″ content_font_size=”desktop:20px;” content_line_ht=”desktop:25px;” content_font_color=”#181818″]Taxi, Uber, and other forms of transportation while away[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-circle” icon_color=”#ed1c24″ content_font_size=”desktop:20px;” content_line_ht=”desktop:25px;” content_font_color=”#181818″]Food, beverage, hotel, Airbnb[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-circle” icon_color=”#ed1c24″ content_font_size=”desktop:20px;” content_line_ht=”desktop:25px;” content_font_color=”#181818″]Dry cleaning while away[/ultimate_icon_list_item][ultimate_icon_list_item icon=”Defaults-circle” icon_color=”#ed1c24″ content_font_size=”desktop:20px;” content_line_ht=”desktop:25px;” content_font_color=”#181818″]Shipping of baggage [/ultimate_icon_list_item][/ultimate_icon_list][/vc_column][/vc_row][/vc_section][vc_section full_width=”stretch_row” el_id=”footer-cont” css=”.vc_custom_1551802080636{margin-top: 30px !important;padding-top: 50px !important;padding-bottom: 50px !important;background-color: #f7f7f7 !important;}”][vc_row][vc_column][vc_custom_heading text=”Learn more how we can help at” font_container=”tag:h3|font_size:30px|text_align:center|color:%231e1e1e|line_height:35px” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal” css=”.vc_custom_1551801729257{margin-bottom: 15px !important;}”][ult_buttons btn_title=”www.BookkeepingZoom.com” btn_link=”url:https%3A%2F%2Fbookkeepingzoom.com%2F||target:%20_blank|” btn_align=”ubtn-center” btn_size=”ubtn-large” btn_title_color=”#ffffff” btn_bg_color=”#ed1c24″ btn_hover=”ubtn-top-bg” btn_bg_color_hover=”#0a0a0a” btn_title_color_hover=”#ffffff” icon_size=”32″ btn_icon_pos=”ubtn-sep-icon-at-left” css_adv_btn=”.vc_custom_1551802067685{margin-bottom: 0px !important;}” btn_font_size=”desktop:20px;” btn_line_height=”desktop:25px;”][/vc_column][/vc_row][/vc_section]