A Real Estate Agent’s Guide to Tax Preparation

Real Estate Agent Tax Preparation
Real Estate Agent Tax Preparation

Whether you’re a seasoned pro or just starting your journey as a real estate agent, this guide shares tips for preparing your taxes confidently and correctly. Of course, we suggest consulting with a tax professional as well. This guide, though, gets you started on the right track.

Real Estate Agent-Specific Deductions

Every profession has its own uniqueness, things that are particular to that career. And that is definitely true for real estate agents.

This section looks at tax deductions, or often called tax write offs, specific to you as a real estate professional.

Office expenses

Deductions include rent, insurance, utilities and internet.

Home office expenses if you work from home

Here, you must choose between (a) the IRS deduction (for approved square footage) or (b) the itemized deductions for mortgage/rent, repairs and utilities.

Vehicle expenses

This includes not only mileage but also fuel costs, maintenance and even lease payments.

Education and accreditation

To be a real estate agent, you’re required many hours of education. So, remember that professional books, continuing education courses, seminars, training, and coaching in your field are tax deductions.


You can also write off business cards, billboards, social media ads, flyers and more.


As a real estate agent, you rely on your phone to communicate with clients and other agents, so your phone and phone service are deductions. Also, computers, printers, cords, ink and other miscellaneous equipment used to do your job are tax write-offs.

The list above is not exhaustive. It’s impossible to note every item or service that agents may use in the year to do their jobs. However, knowing the most common deductions helps you collect receipts and documentation throughout the year. This leads to our next section of the guide.

Record Keeping and Organization

Receipts are the backbone of any tax documentation process. So, collect them and categorize them based on expenses, dates and nature of transactions. This makes it easier to identify and claim deductions during tax season. And today we have many digital tools available to help us organize receipts and keep records. (Bye, bye old shoe boxes!) Explore them and find one that works best for you.

Year-Round Tax Planning

While filing your taxes is a once-a-year task, planning for taxes should not be. It should be a continuous process. Thinking ahead means proactive strategies to maximize deductions and to always gather receipts and documentation as an event occurs. We can’t stress enough how important year-round tax planning is for real estate agents. With the natural ups and downs of your income, strategy is crucial for long-term financial health.

Morgan & Associates Help Real Estate Agents

Taxes should not “sneak up on you.” Instead, you should be prepared. This guide is intended to help you be ready.

Contact us so we can talk more about taxes with you. We’ve helped hundreds of other real estate agents.

Remember, the proactive steps you take today will shape your financial success tomorrow.

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