The Top 78 Tax Deductions For Real Estate Agents

As a real estate agent, you’re constantly working to grow your business and serve your clients. However, many agents miss out on valuable tax deductions that could save them thousands of dollars each year. For example, you might be surprised to learn that the IRS permits deductions for everything from your car expenses to your coffee meetings with clients. In this guide, the team at USA Tax Gurus will show you how to reduce your taxable income and enjoy substantial savings at tax time.

Understanding Your Tax Status as a Real Estate Agent

Most real estate agents work as independent contractors rather than traditional employees. This status gives you greater flexibility but also more responsibility for your taxes. You’ll receive 1099-NEC forms instead of W-2s, and you’re responsible for paying self-employment taxes quarterly. However, this classification also opens the door to many business expense deductions that employees can’t claim.

Home Office and Workspace Deductions

1. Home Office Rent or Pro Rata Mortgage Interest

If you use part of your home exclusively for business, you can deduct the portion of your rent or mortgage interest that relates to your office space. You’ll need to calculate the percentage of your home that’s used for business purposes. This deduction applies when you rent or own your home.

2. Internet Used for Your Home Office

Business internet expenses are fully deductible when used for real estate activities. You’ll want to track how much of your internet usage is for business versus personal use. If you use the internet 80% for business and 20% for personal activities, you can deduct 80% of your monthly internet bill.

3. Home Office Utilities (Electricity, Water, Gas)

You can deduct the business portion of your utility bills, including electricity, water, and gas. Calculate the percentage of your home used for business and apply that percentage to your utility bills. Keep detailed records of your monthly utility costs throughout the year.

4. Depreciation of Your Home Office Space

If you own your home, you can depreciate the business portion of your property. This deduction is calculated based on the cost of your home and the percentage used for business. You’ll need to use Form 8829 to calculate this deduction properly.

5. Office Furniture (Desks, Chairs, etc.)

Any furniture purchased specifically for your home office or business space is deductible. This includes desks, chairs, filing cabinets, and bookshelves. You can either deduct the full cost in the year of purchase or depreciate expensive items over several years.

6. Office Equipment (Computers, Printers, Monitors)

Computers, printers, scanners, phones, and other office equipment are deductible business expenses. If you use the equipment for both business and personal purposes, you can only deduct the business percentage. Keep receipts and documentation for all equipment purchases.

7. Office Supplies (Pens, Paper, Toner)

Basic office supplies like pens, paper, toner, staples, and folders are fully deductible. You don’t need to track individual items, but you should keep receipts for your supply purchases. These supplies should be used primarily for business purposes.

8. Office Decoration (Plants, Pictures, etc.)

Decorations that make your office more professional or appealing to clients are deductible. This includes plants, artwork, professional photos, and other decorative items. The decorations should be appropriate for a business setting and not overly personal.

9. Cleaning Services for Your Work Area

If you hire cleaning services for your home office or business space, these costs are deductible. You can also deduct cleaning supplies if you clean the space yourself. Keep track of which areas are cleaned and ensure the service is primarily for business use.

10. Pest Control Treatment for Your Home Office Space

Pest control services for your business areas are deductible expenses. If the treatment covers your entire home, you can deduct the percentage that relates to your business space. This includes both preventative treatments and emergency pest control services.

Communication and Technology Deductions

11. Mobile Phone and Service Plan Used for Business

Your cell phone and service plan are deductible if used for business purposes. You can deduct the percentage of business-related usage. If you use your phone 60% for business, you can deduct 60% of your monthly bill and phone cost.

12. Landline Expenses, If Used Exclusively for Work

A dedicated business landline is fully deductible. This includes the phone equipment, monthly service fees, and long-distance charges. You must use the landline exclusively for business to claim this deduction.

13. Software Licenses for Business Applications

CRM software, accounting programs, design software, and other business applications are deductible. This includes both one-time purchases and subscription-based software. Make sure the software is used primarily for business purposes.

14. Cloud Storage for Business Files

Services like Dropbox, Google Drive, or iCloud for storing business documents are deductible. Calculate the percentage used for business versus personal files. Many agents find that these services help them share documents with clients more efficiently.

15. Video Conferencing Subscriptions

Zoom, Skype, Teams, and other video conferencing services are now more important than ever. These subscriptions are fully deductible when used for client meetings, team calls, or business training. Keep records of your business-related video calls.

Vehicle and Transportation Deductions

16. Vehicle Mileage Driven for Business Purposes

The IRS allows you to deduct 70 cents per mile for business driving in 2025. Track every business trip, including driving to showings, open houses, client meetings, and networking events. You can use a mileage log app or keep a written record.

17. Vehicle Insurance for Work-Related Use

You can deduct the business percentage of your car insurance premiums. If you use your car 40% for business, you can deduct 40% of your insurance costs. Make sure to track your business versus personal driving carefully.

18. Car Maintenance and Repairs for Business Use

Maintenance and repairs related to the business use of your vehicle are deductible. This includes oil changes, tire rotations, and repairs. You’ll need to calculate the business percentage of these expenses based on your business mileage.

19. Parking Fees for Client Meetings or Showings

Parking fees and meter costs for business purposes are fully deductible. Keep receipts for all parking expenses related to showings, client meetings, or networking events. Many agents find it helpful to take photos of parking receipts immediately.

20. Tolls Incurred During Business Travel

Bridge tolls, highway tolls, and tunnel fees for business travel are deductible. If you have an electronic toll pass, you can separate business and personal trips from your monthly statement. Keep detailed records of which trips were business-related.

21. Vehicle Loan Interest (for Business Use)

Interest on car loans is deductible for the business percentage of vehicle use. If you use your car 50% for business, you can deduct 50% of the loan interest. This applies to both lease payments and loan interest.

22. Cost of Wraps or Decals for Vehicle Branding

Vehicle wraps, magnetic signs, and decals with your business name and contact information are fully deductible. These marketing expenses help promote your business while you drive. The cost of removal is also deductible.

Marketing and Advertising Deductions

23. Marketing on Social Media Platforms

Paid social media advertising on Facebook, Instagram, LinkedIn, and other platforms is deductible. This includes promoted posts, banner ads, and sponsored content. Keep detailed records of your advertising spend and the business purpose of each campaign.

24. Online Advertising for Property Listings

Advertising your listings on Zillow, Realtor.com, Craigslist, and other websites is deductible. This includes featured listing fees, premium placement costs, and pay-per-click advertising. These expenses directly support your business activities.

25. Flyers, Postcards, and Brochures

Printed marketing materials are fully deductible business expenses. This includes just-listed postcards, market updates, and property flyers. You can deduct both the printing costs and design fees for these materials.

26. Custom Business Cards

Business cards are a basic marketing tool and are fully deductible. This includes the design cost and printing expenses. Many agents order business cards in bulk to reduce per-unit costs, and the entire expense is deductible.

27. Professional Photography for Property Listings

High-quality listing photos are important marketing assets. The cost of hiring professional photographers is deductible. This includes basic photos, twilight shots, and aerial photography of properties.

28. Drone Videography for Showings

Drone footage of properties provides a unique perspective for marketing. The cost of hiring drone services or purchasing your own equipment is deductible. Remember that drone operators must be FAA-certified for commercial use.

29. Website Creation and Hosting Expenses

Your professional website is a key marketing tool, and all related expenses are deductible. This includes domain registration, hosting fees, website design, and ongoing maintenance costs. You can also deduct website security services and backups.

30. Fees for CRM Programs

Customer relationship management software helps you stay organized and maintain client relationships. Monthly or annual CRM subscriptions are fully deductible business expenses. This includes systems like Chime, Follow Up Boss, or Top Producer.

31. Lead Generation Subscription Services

Services that provide buyer or seller leads are deductible business expenses. This includes platforms like Zillow Premier Agent, Realtor.com, and BoldLeads. Track your return on investment for these services carefully.

32. SEO Services for Your Website

Search engine optimization services that help your website rank higher in search results are deductible. This includes both one-time SEO audits and ongoing optimization services. Good SEO can significantly increase your online visibility.

33. Property Staging Expenses for Showings

Staging services that help your listings show better are deductible business expenses. This includes furniture rental, decoration, and consultation fees. Staged homes often sell faster and for higher prices, making this a worthwhile investment.

34. Signage for Open Houses and Listings

Yard signs, open house signs, and directional signs are deductible marketing expenses. This includes the initial cost of signs and any replacement signs needed throughout the year. Custom signs with your branding create name recognition.

35. Subscription Costs for Market Analysis Tools

Services that provide market data, comparables, and analysis are deductible. This includes MLS access fees, market report services, and property valuation tools. These tools help you provide better service to your clients.

Professional Development and Licensing Deductions

36. Real Estate License Renewal Fees

Your real estate license renewal fees are fully deductible business expenses. This is typically an annual or biennial expense, depending on your state. Keep all documentation related to your license renewal.

37. Professional Association Dues

Membership fees for realtor associations, NAR, and local real estate boards are deductible. These memberships often provide valuable networking opportunities and resources. You can also deduct special assessments from these organizations.

38. Continuing Education to Maintain Your License

Required continuing education courses are fully deductible. This includes online courses, classroom training, and any materials needed for the courses. Even if you exceed the minimum required hours, additional education is still deductible.

39. Workshop or Seminar Entry Fees

Professional development workshops and seminars are deductible business expenses. This includes real estate conferences, sales training, and technology workshops. These events help you stay current with industry trends and improve your skills.

40. Travel for Conferences

Travel expenses for business conferences are deductible, including airfare, hotel rooms, and ground transportation. You can only deduct the travel days actually spent at the conference. Keep detailed records of all conference-related expenses.

Client Entertainment and Gifts Deductions

41. Business-Related Meals (50% Deductible)

Meals with clients, prospects, or other real estate professionals are 50% deductible. This includes restaurant meals, coffee meetings, and lunch meetings with lenders or contractors. The meal must have a business purpose, and you must be present.

42. Costs of Hosting Client Events

Client appreciation events, holiday parties, and networking events are deductible business expenses. This includes venue rental, catering, entertainment, and decorations. These events help maintain relationships with past clients and generate referrals.

43. Gifts to Clients

Gifts to individual clients are deductible up to $25 per person per year. This includes closing gifts, holiday gifts, and birthday presents. Promotional items with your business name don’t count toward this limit.

44. Custom-Branded Promotional Products

Promotional items with your name and contact information are fully deductible. This includes magnets, calendars, notepads, and water bottles. These items keep your contact information in front of clients year-round.

Insurance and Professional Services Deductions

45. Errors and Omissions (E&O) Insurance Premiums

E&O insurance protects you from professional liability claims and is fully deductible. This coverage is often required by your broker or MLS. The premiums are typically paid annually or quarterly.

46. General Liability Insurance for Your Business

General liability insurance covering your business activities is deductible. This protects you from claims related to property damage or injuries that occur during business activities. Many agents add this coverage to their homeowners’ policy.

47. Legal Fees for Contracts and Consultations

Legal consultations and contract reviews are deductible business expenses. This includes fees for transaction-related legal issues, business formation, and ongoing legal advice. Having a good real estate attorney is especially valuable for more complicated transactions.

48. Tax Preparation or CPA Services

Professional tax preparation is a deductible business expense. This includes both the preparation fee and any additional consultations throughout the year. A good tax professional can often save you more than their fee through proper tax planning.

49. Financial Advisor or Consultancy Costs

Fees for business consultants and financial advisors are deductible. This includes retirement planning, business development coaching, and financial planning services. Make sure the advice is business-related to qualify for the deduction.

Office Space and Administrative Deductions

50. Referral Fees Paid to Other Agents

Referral fees paid to other agents for sent business are deductible. This is common when you refer clients to agents in other areas or specialize in different property types. Keep detailed records of all referral arrangements.

51. Bank Fees on Business Accounts

Monthly maintenance fees, overdraft fees, and other charges on business bank accounts are deductible. This includes fees for business checking accounts, savings accounts, and credit lines. Keep your business and personal accounts separate.

52. Credit Card Interest Payments for Business Purchases

Interest on credit cards used exclusively for business purchases is deductible. If you use a card for both business and personal expenses, only the business portion of interest is deductible. Consider having a dedicated business credit card.

53. Work Attire Featuring Your Company Logo

Clothing with your company logo or name is deductible if it’s not suitable for everyday wear. This includes polo shirts, jackets, and other branded apparel. Clothes that could be worn for personal activities aren’t deductible.

54. Dry Cleaning of Work-Related Branded Clothing

The cost of cleaning branded work clothing is deductible. This includes dry cleaning, laundry services, and alterations to branded clothing. Keep receipts for all cleaning expenses related to business attire.

55. Rental Costs for Office Spaces or Co-working Desks

If you rent office space or use co-working facilities, these costs are fully deductible. This includes monthly rent, shared workspace fees, and meeting room rentals. Many agents find that co-working spaces provide professional meeting spaces for client meetings.

Equipment and Technology Deductions

56. Maintenance Services for Office Equipment

Regular maintenance and service contracts for business equipment are deductible. This includes printer service contracts, computer maintenance, and equipment cleaning services. Proper maintenance extends equipment life and prevents expensive repairs.

57. Postage for Sending Client Documents

Stamps, certified mail, and courier services for business documents are deductible. This includes mailing contracts, disclosure statements, and marketing materials. Track all postage expenses throughout the year.

58. Courier Services for Urgent Deliveries

Same-day delivery services for urgent business documents are deductible. This includes courier services for contract deliveries and time-sensitive paperwork. These services are becoming more common in competitive markets.

59. Printing of Property Brochures or Banners

Printing costs for marketing materials are fully deductible business expenses. This includes property brochures, open house banners, and promotional posters. Digital printing allows for small quantities and quick turnaround times.

Personnel and Support Service Deductions

60. Personal Assistant Expenses Used for Business

If you hire a personal assistant for business tasks, their salary and benefits are deductible. This includes transaction coordination, administrative tasks, and marketing support. Make sure the assistant’s duties are primarily business-related.

61. Virtual Assistant Expenses

Virtual assistants who handle your business tasks are deductible business expenses. This includes social media management, lead qualification, and administrative tasks. Many agents find virtual assistants cost-effective for routine tasks.

62. Assistant or Employee Salaries

If you have employees, their salaries, benefits, and payroll taxes are deductible. This includes W-2 employees such as assistants or transaction coordinators. Make sure to comply with all employment laws and regulations.

63. Payroll Service Costs

If you use a payroll service for your employees, these fees are deductible. This includes processing fees, tax filing services, and year-end reporting. Payroll services help ensure compliance with tax regulations.

Health and Benefits Deductions

64. Health Insurance Premiums

Self-employed real estate agents can deduct health insurance premiums for themselves and their families. This is an above-the-line deduction, reducing your adjusted gross income. You must not be eligible for coverage through a spouse’s employer plan.

65. Contributions to Retirement Accounts

Contributions to SEP-IRAs, Solo 401(k)s, and other self-employed retirement plans are deductible. These contributions reduce your current tax liability while saving for retirement. Contribution limits are often higher for self-employed individuals.

66. Workers’ Compensation Insurance

If required by your state, workers’ compensation insurance premiums are deductible. This coverage protects you and any employees from work-related injuries. Even if not required, voluntary coverage may be deductible.

Specialty Equipment and Services Deductions

67. Repairs or Upgrades to Business Technology

Repairs and upgrades to business equipment are deductible. This includes computer repairs, software updates, and equipment modifications. Major upgrades might need to be depreciated over several years.

68. Fees for Background or Credit Checks

Background and credit check fees for tenant screening are deductible. This is common for agents who also manage rental properties. These fees help ensure qualified tenants and protect property owners.

69. Costs of Sponsoring Local Events

Sponsoring community events for marketing purposes is deductible. This includes youth sports teams, charity events, and community festivals. Sponsorships provide marketing exposure while supporting your community.

70. Rental Fees for Specialty Tools

Renting specialized equipment like drones, surveying tools, or staging furniture is deductible. This allows you to access equipment without the full purchase cost. Rental fees are deductible in the year incurred.

71. File Storage Charges or Document Archiving Services

Digital storage services for business documents are deductible. This includes cloud storage for transaction files and backup services. Proper document storage protects you from lost paperwork and helps with future reference.

72. Fees for Answering Services

Phone answering services that handle your business calls are deductible. This ensures professional call handling when you’re showing properties or in meetings. Many services can provide 24/7 coverage for your business.

73. Moving Costs for Office Relocation

Moving expenses when relocating your business office are deductible. This includes moving services, truck rentals, and temporary storage. Keep detailed records of all moving-related expenses.

74. Small Appreciation Gifts for Suppliers or Colleagues

Small gifts to vendors, lenders, or colleagues who refer business are deductible up to certain limits. This includes holiday gifts, thank-you gifts, and appreciation tokens. These gifts help maintain important business relationships.

75. Open House Hosting Costs

Light refreshments and supplies for open houses are deductible. This includes coffee, snacks, water bottles, and guest registration supplies. These costs help create a welcoming environment for potential buyers.

76. Additional Certifications or Designations

Costs for obtaining additional certifications like ABR, CRS, or GRI are deductible. This includes course fees, materials, and testing costs. These designations can differentiate you in the marketplace and justify higher commissions.

77. Standard Subscriptions

Business-related magazine and publication subscriptions are deductible. This includes real estate industry magazines, market research reports, and professional journals. These materials help you stay informed about industry trends.

78. Fees for Background or Credit Checks

Background and credit check services used for qualifying tenants or clients are deductible business expenses. These tools help protect your clients’ interests and ensure smooth transactions. Many agents include these costs in their property management services.

Maximizing Your Deductions

To get the most benefit from these deductions, you need to maintain thorough records throughout the year. Create a system for organizing receipts, either digital or physical, and consider using accounting software or apps that can photograph and categorize receipts automatically.

Remember that you can only deduct expenses that are ordinary and appropriate for your business. The expense should be reasonable in amount and directly related to your real estate activities. When in doubt, consult with a tax professional who knows real estate taxation.

By taking advantage of these 78 deductions, you can reduce your tax liability substantially and keep more of your hard-earned commission income. Remember that tax laws change frequently, so stay informed about current regulations and consult with a qualified tax professional to be sure you’re maximizing your deductions while staying compliant with IRS rules.

Ready to Maximize Your Tax Savings?

At USA Tax Gurus, our team of licensed CPAs and enrolled agents knows exactly which deductions you’re entitled to and how to properly document them. We’ve helped real estate agents across the nation save thousands of dollars through proper tax planning and preparation. If you’re a new agent just starting out or a seasoned professional looking to optimize your tax strategy, we’re here to help you keep more of what you earn. Contact USA Tax Gurus today for a free consultation and learn how much you could save on your taxes this year.